BOSSES at a Leyland pizza factory have cancelled Christmas bonuses for staff as part of cost-cutting measures.

Workers at Schwan's Consumer Brands, Marathon Place, have also been told there will be no festive party and no annual family fun day.

Ten staff at Schwan's have been handed compulsory redundancy notices in recent weeks and there have been rumours that it is planning to close down the factory and relocate to its Sara Lee factory in Bridlington, Yorkshire.

But a spokesman for the company has denied there are any plans to move.

He said: "Schwan's has not been unaffected by the difficult manufacturing environment currently influencing many companies.

"We have gone through a cost review and slight reorganisation in line with this and have unfortunately had to make a small number of people redundant.

"The 10 redundancies have been within our human resources, hygiene, engineering and warehouse departments.

"In light of the current environment we are unable to continue with plans for the 2005 staff Christmas bonuses, the Christmas party and family fun day.

"We can confirm that there are no plans to close the Leyland site and move production to Bridlington."

In 2003, Schwan's invested £10million in Marathon Place, which had opened in 1989, and announced a turnover of more than £80m last year.

The factory, which employs more than 400, is the head office for Schwan's Consumer Brands Europe Ltd and produces some of the company's most famous food ranges, including Chicago Town pizza.