200 jobs axed at Fletchers Bakery

Bosses also revealed plans for a "reduced working week" as a result of a "strategic review" aimed at securing a future for its Claywheels Lane facility.

They said the proposal was "in order to stem the significant losses the site has increasingly incurred over the last few years and provide the factory with a stable platform for the future".

A 90-day consultation period has been launched by the bakery to discuss the move with employees and union officials.

The firm suffered major fire damage last year and axed 80 jobs in February - less than a month after workers were reassured their futures were secure after a 160 million takeover by Vision Capital.

But the fire hit the firm hard and management at the Wadsley Bridge firm are understood to have been arguing that changes were needed to stay afloat.

Their review identified a range of uncompetitive loss-making product lines and the firm is now proposing that work stop on these products.

But that will mean a drop in the company's overall sales.

A statement from management said: "As a result less people will be needed, hence the potential redundancies."

It added there will also be changes to terms and conditions to reflect a smaller business and a shorter working week. The changes will impact "all functions, areas and departments".

If the proposals go ahead the new working arrangements will start from early December.

Bosses say if the company does have to make people redundant, they will try to find new jobs or training elsewhere for those affected.

General manager Peter Williams said: "We understand that this announcement is likely to cause concern for those affected and their families.

"We will be consulting fully with all potentially affected employees and keeping them fully appraised of the situation as it progresses.

"While this announcement is regrettable, the significant losses at the site are unsustainable and these proposals are vital if we are to secure the future of Fletchers Bakeries in Sheffield."