TROUBLED kitchen manufacturer the Bernstein Group has confirmed it is planning to shed up to 320 workers over the next 12 months.

The move, which means almost half the 720 staff at the Westhoughton factory will go, was explained to employees by management in a series of meetings yesterday.

In the first round of redundancies, 20 people are expected to lose their jobs before Christmas.

A spokesman for the company said the business had changed significantly over the last 18 months and although there was steady sales growth in retail and contract brands as well as new business areas, volumes of work would reduce next year.

"The company has announced restructuring measures to safeguard the long-term future," said the spokesman.

The huge scale of the cutbacks did not come as a major shock to the workforce, who were bracing themselves for bad news after reports that the firm had lost a major contract to supply kitchen units to DIY retailer B&Q.

The lost contract is believed to have made up to 60per cent of the company's business and management have been unable to find new customers to replace all the orders.

"I think a lot of people here are just resigned to the fact of redundancies," one saddened employee said.

Bernstein managing director Tony Fox said employees were being consulted about redundancies from the outset.

"When the time is reached for this to be actioned the company, in conjunction with the Regional Business Link offices and other support groups, will ensure that a comprehensive employee support programme is provided," he said.

Westhoughton councillor David Wilkinson says the loss of so many jobs will have a profound affect on the town.

Suppliers and local shops and businesses will all feel the pinch as those who are made redundant cut back on spending.

"Unfortunately there are not a lot of other jobs going around here," he said.

The employment situation in the town is further under threat with the owners of Carnaud Metal Box currently considering whether to close its Westhoughton factory, axing 125 jobs.

Cllr Wilkinson says he is not only concerned for the jobs, but for the future of the sites manufacturing businesses leave behind.

He fears pressure from developers may mean extra housing being built in the town to serve commuters instead of work places. This would drive local people, who cannot afford expensive homes, out of the area to search for work. "There is already pressure for housing in Westhoughton. It is just a vicious circle," he said. "It is not going to be a good Christmas in Westhoughton this year."