Staff at Wessex Water have been told this morning that the firm is to make 200 job cuts as the recession has led to it running out of work in some areas.

The firm, which covers the south west and has employees at its depot in Kennet Way and treatment plant and education centre in Bradford Road, both in Trowbridge, has informed staff this morning.

It is understood the majority of jobs will be at Wessex Engineering division, which is responsible for laying mains pipes and construction.

The GMB union has been informed of the losses, which the firm, owned by Malaysian firm YTL, hopes to have wrapped up by September.

One Wiltshire employee said: "People are taking it quite badly. They have not given us any information - all they have said is that 200 people will go.

"They can't answer any of our questions."

Wessex Water said it hopes to achieve the reduction of 200 jobs through normal staff turnover and reviewing the use of contract and agency staff.

A statement released this morning said: "We have today begun consultation with employees and unions and will be looking at options of utilising employees in other areas of the business, exploring other commercial opportunities and liasing with other companies to see if they have a need for skilled staff.

"The decision is a result of the current economic climate, the severe reduction in new development and the needs of the company’s future investment programme.

"Although it will affect all parts of the business the greatest impact will be in Wessex Engineering and Construction Services."

Alan Morgan, head of human resources, added: “It is regrettable that we have had to make this decision, but unfortunately we are running out of work in some areas of our business.

"We will do everything we can to minimise the number of redundancies and have started a consultation process with staff.”

Wessex Water is one of 10 water and sewerage companies in England and Wales, and employs around 2,500 people.

The redundancies will be throughout the area Wessex Water serves including Wiltshire, Dorset, Somerset, Bristol and parts of Gloucestershire and Hampshire.