A DOWNTURN in the American economy since the terrorist attacks on September 11 has caused a local firm to cut between 90 and 100 jobs.

Workers at Eaton Transmissions have been put on a 30 day notice and will finish before Christmas.

The Walkden company, which makes transmissions for American truck firms, has been forced to make the huge job cuts in response to the economic slump.

And the company, which has its headquarters in Ohio, admits that more redundancies could be on the way if the downturn continues.

The axe has fallen on both shop floor workers and administrators.

One worker, who did not wish to be named, said his colleagues were "disappointed" at the redundancy pay deal offered.

The union, the AEEU, is fighting for a better redundancy pay deal for workers.

The disgruntled worker said: "Some have worked there more than 30 years. It's terrible.

"The rest of us just feel let down and disappointed. We are going to be out of work for Christmas. It could have come at a better time."

The firm announced that 40 jobs were to be lost in April this year.

Eaton Transmissions, in Worsley Road North, blamed previous job cuts on restructuring by its American owners.

But today, human resource manager Mr Matthew Bendler, said: "This time it is different. There has been a big downturn in the American market and we are responding to this."

The local factory employs 473 people reducing this to 380 by November 30.

The Walkden factory has been a major local employer since the mid-1960s.

At one time, before a disastrous fire in 1979, it employed nearly 1,000 people.

The factory was re-built at a cost of £20 million and was opened by Prince Philip in June, 1982.