Gas pipeline operator Lattice said today it was cutting 2,400 jobs at its Transco business.

Lattice said it was shedding the jobs to cut costs in line with targets set by the industry regulator Ofgem.

The company, which employs 14,000 staff at its Transco business, said pre-tax profits fell by £54 million to £680 million last year.

Lattice said around three-quarters of the job losses would come from management and administrative grades.

Union leaders warned the job losses could lead to a "major safety failure" and some officials refused to rule out the threat of strikes.

Dave Johnson, national officer of Unison, said: "We don't believe that Transco can continue to operate safely with the loss of 2,400 jobs.

"This announcement is a knee-jerk response to tough price controls placed on it by Ofgem and we will fight any attempts to impose redundancies."

Lattice chairman Sir John Parker denied claims that the job cuts - due over the next two years - would impact on safety standards.

He stressed there would be no reduction in the number of employees working on gas main maintenance or repairs.