The company's entire production workforce was told they could face the axe, ending more than half a century of fridge production at the Morley Way site.

Italian-owned Indesit, which purchased Hotpoint in 2001, plans to cease production on October 31, before moving its operation to Europe.

The bombshell comes just four months after an Indesit employee found a sheet of paper left on a fax machine stating that jobs could be at risk.

At the time, bosses told union officials that jobs were safe.

Special Report: Hotpoint timeline: The path towards job losses
As Indesit shuts it's Hotpoint factory in Peterborough with 400 job losses.
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But in a swift U-turn yesterday, Indesit's UK manufacturing director Carlos Ramos said: "It is with regret that the company must announce its proposal to cease all production related activities at the Peterborough site."

Mr Ramos blamed a "continued reduction" in demand from the UK market for free-standing fridges.

After being told of the the possible job losses in a "short briefing" at 2pm yesterday, staff emerged grim-faced and shaking their heads in disbelief.

Workers were told not to speak to The Evening Telegraph, but one worker said: "I'm in my 50s. How am I supposed to find another job?"

GMB Union regional officer David Shamma said workers were "stunned" after being told the news in a changeover between two production shifts.

He said: "The workforce is devastated, very unhappy. They are wondering why. As a union, we will be asking how Indesit came to this decision, whether it is reversible and how we can lessen the impact?

"It seems the decision is based on the fact that it is cheaper to make the products in countries such as Poland, but where does that leave the future of British manufacturing?"

Today, Peterborough's two MPs spoke of their bitter disappointment at the end of a manufacturing era.

North West Cambridgeshire MP Shailesh Vara said: "I have asked the managing director to consider every option open to them with a view to saving as many jobs as possible.

"I have also urged the management to be as generous as they can be in terms of financial packages for those who are made redundant, as well as doing as much as can be done to help those affected find new jobs.

"My sympathies go out to all those workers and their families who have this cloud hanging over them. I realise it must be a very difficult and worrying time for all affected."

Peterborough MP Stewart Jackson added: "We are talking about well trained and skilled people, and I do hope that jobs will be available to them at Indesit perhaps in another capacity or with other city businesses.

"I hope to meet with managers at Indesit next week to ensure that they are doing everything to help those made redundant, and safeguard the other jobs at their UK headquarters on site."

Indesit's head office, service centre and headquarters logistics, which employ a combined 1,000 people at the company's Morley Way site, are not affected by job losses.