A MAJOR Tamworth firm is to shed "several hundred" jobs after losing two vital contracts.

Drive Assist, which has its head office in Ventura Park and another premises in Fazeley, announced the shock news to its workforce on Monday.

The company, which supplies courtesy cars and vehicles on short-term hire, employs over 1,200 people – half of them in Tamworth.

Set up by four local men back in 1992, the firm has gone from strength to strength in recent years.

But the shock loss of two major contracts will mean job losses.

One employee, a 20-year-old Tamworth man, who did not wish to be named, said: "I was told on Monday that I was losing my job and obviously I was really upset.

"It is the second time I have been made redundant this year and as I have only been at Drive Assist for less than three months, I won't get any redundancy pay.

"I have a car loan, insurance and rent and other bills to be pay – I need a job, but at the moment I am not very hopeful of getting another one, there are few jobs in Tamworth anyway and now they'll be another 200 or so people looking for a new job too."

The man, who works as a claims handler, added: "The mood in the offices is horrible – everyone is really sad, I think there are around 200 of us who are losing our jobs, but what makes it even harder is that we've not yet been given a deadline for when we actually leave."

Company director Ralph Ferguson told the Herald that several hundred job losses were likely.

"Drive Assist has recently been informed of the loss of two contracts. The specific details regarding the end of these contracts has yet to be finalised.

"This will result in job losses at our head office in Tamworth, and across depots throughout the country.

"It is too early to state the number of jobs that will be lost, however, it will run into several hundred out of a total workforce of more than 1,200.

"Full consultation with affected staff will be undertaken by the company in due course."

Drive Assist was set up by Steven Binch (who is still a director) and three other people in 1992.

As well as its two call centres, it has 18 key operational sites and a fleet of 15,000 vehicles, from basic courtesy cars through to commercial and prestigious vehicles, 80 per cent of which are owned by the company.

The recent success of the company is illustrated by the fact that they reached the finals of six different business awards last year.

Mr Ferguson added: "We recognise that this is a disappointment for the local community.

"Drive Assist has grown every year for the last 18 years and although this is a set back, the company remains confident for the future."