Defence firm Thales has confirmed plans to close its Raynes Park office, meaning 200 jobs will be lost or moved elsewhere.

Although the company said it had no current plans to make redundancies as part of the cost saving exercise, existing staff would have to commute or relocate to sites at Crawley or Leicester.

Diana Sterck, chief executive of Merton Chamber of Commerce, described the move as “a big loss at a time of recession”.

She said it was the latest example of large employers leaving the borough.

She said: “It is becoming more and more a borough of small employers - and in many ways that is a shame.”

One Thales staff member, who did not wish to be named, said: “Many of the staff live locally so this is going to be a major upset in their lives.

"Commuting to Crawley will be a major inconvenience.

Leicester will involve relocation.

“The workforce here are predominantly over 40, with many into their 50s. Finding another job won’t be easy.

“Although the company say that they don’t intend making redundancies, with the current economic problems, the future doesn’t look good for staff who aren’t assigned to projects at the other offices.”

Work handled at the Raynes Park site includes providing support systems for Chinook and Lynx helicopters involved in military operations in Afghanistan.

The staff member said: “It’s not very clever to be breaking up these development teams - which include many people with more than 20 years’ experience working on these systems.

“Surely keeping these teams together is an issue for national security?”

Ms Sterck said good transport links meant Merton was an attractive place to do business - but a lack of large sites was stopping big companies moving in to the borough.

A Thales spokeswoman said none of its customers would be affected by the closure.

She said: “There are no redundancies planned as part of the proposal, as it is the company’s intention to relocate individuals affected.

“However, should this change, individuals will be notified if they are eligible for potential redundancy during a consultation period, and we will provide outplacement support for those individuals seeking new roles outside of Thales UK.”

The company was unable to confirm whether the move would affect its sponsorship of nearby Raynes Park High School, a specialist technology college.

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