Support offered to Ericsson staff

Workers have only been at the Ansty Park site since May

Business and council leaders in Coventry are setting up a group to help the 700 workers whose jobs will go at telecommunications firm Ericsson.

The company announced on Tuesday it would be withdrawing its global research and development activities from Ansty Park next year.

Warwickshire County Council officials said it was "extremely disappointing".

Ericsson has said the Ansty Park site, which only opened in May, is no longer viable for the company.

Peter Fowler, the county council's cabinet member for economic development, said Ericsson's decision had had a "huge impact on the lives of local people".

'Minimise impact'

He said: "It is very early days, but I want to reassure people that it is now a matter of utmost urgency for both Warwickshire County Council and Rugby Borough Council.

"We will work with partners to set up a task force to minimise the economic impact of the news and to develop a clear way forward to support those local employees and local businesses affected by Ericsson's decision."

On Tuesday, the Unite union said the news had come as a "shock" to workers.

Mats Granryd, from the Swedish firm, said it was "sad news" for employees.

Ericsson said it intended to move the research and development arm of its business to countries where there were already "significant scale and product synergies".

It added that research and development for new products would switch to lower cost-base countries.