More than 400 jobs are believed to be at risk at a bakery in Dronfield after the firm lost one of its major contracts.
Parent company 2 Sisters Food Group this week confirmed that Gunstones, which employs about 1,200 staff at its Stubley Lane site, had lost a contract for triangle sandwiches with Marks and Spencer.
John Higgins, organising regional secretary at the Bakers, Food and Allied Workers’ Union (BFAWU), said he believed the firm could possibly shed 120 jobs by the end of August, with another 300 potentially to be lost in January next year.
A company source said it was “totally wrong” and “far too early” to speculate on how many jobs might be at risk and added a consultation with staff had been launched.
Mr Higgins said the news was a “major surprise” – and that the business will have to undergo a restructuring process as a result.
He added: “Gunstones is a jewel in Dronfield’s crown – a 24/7 operational site.”
A spokesman for the firm said: “Gunstones Bakery confirms that its current contract to supply triangle sandwiches to one of its customers will be brought to a close within the next six months.
“The company is reviewing the impact of this on its business. It is entering into a period of consultation with affected colleagues and their elected representatives.”