Three hundred jobs are to go at the airline Flybe, a third at its headquarters in Exeter. The company is trying to reduce costs by £35 million as passenger revenues fall and fuel prices rise.
The firm is mainly blaming the increase in air passenger tax which managers say left them with "no choice" but to cut jobs.
Unemployment in the South West has fallen by 10,000 in the last three months. Figures released by the Office for National Statistics show that the current unemployment rate is 5.5%
It comes at the same time 300 jobs losses have been announced by Flybe, a 100 of which will go in Exeter. The company is trying to save £35 million as passenger revenues fall and fuel prices increase.