Shipping giant P&O announced yesterday it was axing four routes with the loss of around 1,200 jobs.

Facing strong competition from the low-cost airlines and the Channel Tunnel, P&O said it was scrapping three of its four Portsmouth crossings as well as one of its Irish Sea routes.

Unions reacted angrily to the changes which will see the company's number of ships reduced from 31 to 23 and which are expected to save £55 million a year.

Ships' masters' union Numast said it was "a bad day for British shipping" while P&O chief executive Robert Woods said he "greatly regretted" the job losses, but that he was determined to see a major improvement in profitability.

Mr Woods said: "The object of all this is to turn this business round. It will not be painless as there are significant numbers of people involved.

"Initial consultation with staff shows the workforce is supportive of change and we believe there should not be industrial action. It would not be in anyone's interest."

P&O currently, which currently employs 3,600 sea-going staff and 2,500 shore-based workers, said that in addition to the expected 1,200 job losses, as many as 350 jobs would be transferred.