Jobs under threat at firm behind South West Trains

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Brian Souter, chief executive of Stagecoach Group which runs South West Trains, said any responsible company would seek to control costs in the face of a downturn.

Administrative and marketing roles are expected to be the first to be hit while a spokesman said frontline staff would not be affected. Stagecoach employs about 30,000 people and South West Trains is London's biggest commuter franchise.

Mr Souter said no decisions have been taken yet. He added: "Central London employment is already falling but we haven't seen any impact on peak-time travel. However, it's fair to say that there are fewer leisure travellers."

Transport groups believe more people are travelling by train instead of car known as a modal shift because of the rising cost of motoring and congestion.

Mr Souter said: "The question for us and other transport operators is whether modal shift can occur faster than the impact of a downturn in the economy."