HUNDREDS of York jobs are under threat as Railtrack considers moving its regional headquarters away from the city, the Evening Press can reveal today.

A leaked internal memo informs staff that the London North Eastern zone, based at Station Rise, York, is to be merged with the East Anglia zone.

East Anglia House, based in London, and the York HQ would be replaced by a single operation.

It has not yet been disclosed where the new base would be, but the leaked document, an internal newsletter called Keeping Track, says: "We know that it would be difficult to run the whole area from York or East Anglia House."

The newsletter also admits there will be redundancies, although numbers are not yet known.

Around 500 staff are employed in York, the majority being clerical or management staff.

"Options for suitable alternative jobs will be considered. Retraining will be offered where required. Redundancy will be the last option," the document continues.

The merger comes as zone director Robin Gisby admits in a frank letter to staff: "As a company, we are facing major problems.

"Performance is improving but is not yet back to where it needs to be."

Staff believe there is a chance that the merged HQ could be located in Peterborough or Doncaster, which are both more central.

Updated: 11:12 Tuesday, September 04, 2001