More gloom as 2,300 jobs axed

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London Underground said is will axe 1,000 jobs this year, affecting non-operational areas including finance and administration; power giant E.ON announced 450 job losses; DVD and games retailer Zavvi said another 15 of the chain's stores had been closed, leaving 295 staff out of work; engineering group Cookson confirmed plans to cut nearly 180 jobs; 127 jobs were lost at food firm Serious Foods after it was forced to call in administrators; while law firm Linklaters announced plans to cut up to 270 UK jobs.

Meanwhile, the GMB union raised fears for 182 jobs at a National Grid site in Newcastle upon Tyne because of plans to out-source work.

A rare upbeat announcement was provided by US-owned sandwich chain Subway, which unveiled plans to open 600 new stores in the UK and Irish Republic, creating more than 7,000 jobs by the end of 2010. The chain already has more than 1,400 UK and Irish stores, employing more than 16,000 people.

E.ON said more cuts were possible as part of a programme to introduce "leaner and more efficient processes" and the 450 job cuts will mainly affect its retail division.

Chief executive Dr Paul Golby said the energy firm would make every effort to achieve the reduction by voluntary redundancies.

Dave Prentis, Unison's general secretary, said the cuts showed that no sector of the economy was immune from the recession.

He said: "While customers struggle with high water and energy bills, utility companies are making staff redundant. The competitive market system is fatally flawed, benefiting neither customers nor employees."

Unison said the Government and regulator Ofgem should urgently review the operation of the energy market.