Engineering giant Bombardier is to axe 1,300 jobs in Britain but will keep open its train building factory.
The Canadian firm said its main site in Derby will stay open despite a gap in orders from the end of the year to 2008.
But a smaller factory in Derby will close, as well as plants in Doncaster and Wakefield.
A total of 1,362 jobs will be lost, 23 per cent of Bombardier's total UK workforce.
The cuts are part of 6,600 redundancies being sought under a global restructuring exercise.
The cuts were announced by Bombardier president Mr Paul Tellier who said excess capacity in the rail transportation business had to be addressed.
The workforce in the company's rail operations business is being cut by 18.5 per cent and seven production sites in five European countries will close.
Factories will also close in Portugal, Germany, Switzerland and Sweden.
PA