YORK'S biggest employer is to shed up to 90 jobs.

Nestl has revealed it is in talks with workers after it sold off a major part of its food business earlier this year.

A spokeswoman said she could not confirm how many jobs would go.

But an employee, who asked not to be named, said: "I have been told that about 35 people would be made redundant with the closure of the group purchasing department, and that altogether about 90 redundancies are expected."

Another worker said: "The staff in group purchasing have been told there will be redundancies, and they could come into effect from about September.

"The understanding is that there has been a review since the food business was sold off because there is less business as a consequence and, therefore, less people needed.

"We are just waiting now to hear what the plans are."

The group purchasing department is responsible for buying materials such as packaging.

It is thought some of the jobs could be relocated to Nestl's plant in Croydon.

In January, the company revealed it was selling off brands including the famous Rowntree's jelly, Branston Pickle, Crosse & Blackwell, Gales Honey, SunPat peanut butter and Sarson's vinegars.

Although none of the brands were based in York, the company warned a knock-on effect was possible.

A company spokeswoman said today: "We are in consultation with all of our employees, but we can give no confirmation of any redundancies at the moment."

Another said: "Initial redundancy figures were based on an estimate of 240 job losses across Nestl UK, and we believed approximately 90 could be in York.

"That was always subject to change. The latest indication is 150 in the UK, meaning York's losses could be considerably lower. We are working hard to keep the figure as low as possible."

Last year, 80 jobs were lost at the company's York base after it sold its UK ice cream business.

York's Economic Development Unit manager, Bryn Jones, said: "We are aware of the review and consultation under way and are offering to provide an input."

York-based chocolate firm Terry's has been closed this week after management changed its annual closedown from the Spring bank holiday to Easter.

Updated: 11:29 Friday, April 05, 2002