Managers deciding the future of the Tachbrook Park site, announced a new contract with European logistics company Ceva on Wednesday.

Ceva already manages the EMI's distribution in Spain and Portugal and is expected to take over the UK operation in the spring.

A spokesman for the record company, whose acts include Coldplay, refused to comment on how many jobs would be lost. He said:

"We have entered into a consultation process with all affected staff and can't make any further comments."

Fears of redundancies at the Hermes Close centre were first raised in January when the company announced plans to cut 2,000 jobs. EMI has been operating in Leamington since 1992.

Warwick District Councillor John Hammon (Con, Cubbington) is responsible for economic development. He: said: "Any business lost is a blow. I feel very sorry for anyone losing their jobs but hope they can be employed doing something else in the local area.

"At the moment around Leamington it is not too bad but with building companies and logistics companies suffering everyone is finding it difficult

"The government ought to be doing all they can to keep prices low as logistics companies they have to go were it is cheaper to run and I am sure fuel is cheaper in Europe than it is here."