ONE of Dorset's biggest employers has shocked the county by announcing it is to axe 1,000 jobs Speculation has surrounded the future of Barclays House - one of Poole's most iconic buildings - for months.

But staff were left reeling yesterday when it was unexpectedly revealed more than 1,000 permanent positions will be slashed by 2010.

Barclays - Poole's largest private sector employer - says the cuts are due to restructuring and the implementation of new technology.

Around 1,900 permanent staff are currently employed at Barclays House and there were tears from some staff as they came out of the building on their lunch breaks.

Most of the cutbacks will come in the IT departments over the next three years, with some staff being made redundant before the end of this year.

A statement circulated to employees said it was a time of great change' within Barclays and staff would be kept up to date on developments.

Barclays says it is still committed to the conurbation and expects at least 850 jobs to remain in Poole and Bournemouth.

However, a decision is yet to be made on where the offices will be located, though it has been announced the bank will move out of Barclays House by 2010.

The nine-storey tower was opened in 1976 and houses 2,500 employees, including contractors and temporary staff.