Bath's biggest private employer is to looking to shed 200 jobs.

Claverton Down-based Wessex Water today announced plans to reduce its 2,500-strong workforce by up to 200 by the end of the year.

The jobs would go at its operations across the south and west, with the firm saying it hopes to achieve as many losses as possible by normal staff turnover and reviewing the use of contract and agency staff.

A spokesman said today: "We have today begun consultation with employees and unions and will be looking at options of utilising employees in other areas of the business, exploring other commercial opportunities and liaising with other companies to see if they have a need for skilled staff.

"The decision is a result of the current economic climate, the severe reduction in new development and the needs of the company's future investment programme."

The firm said the job losses would will affect all parts of its business, but that the greatest impact would be in its Wessex Engineering and Construction Services division, which lays pipes.

Head of human resources Alan Morgan said: "It is regrettable that we have had to make this decision, but unfortunately we are running out of work in some areas of our business. We will do everything we can to minimise the number of redundancies and have started a consultation process with staff."

The area Wessex Water serves includes Dorset, Somerset, Bristol, most of Wiltshire and parts of Gloucestershire and Hampshire.

It moved its operations headquarters into a new £22 million building at Claverton in 2000.

Another major Bath employer, accident assistance firm Helphire, is in the middle of shedding 350 jobs.