Production at the Cowley car plant has stopped this week in response to the dip in motor sales caused by the recession.

Almost a third of the workforce at the plant, which produced the Mini, are agency staff and many of those who walked out from their final shifts this morning to the realisation they were being laid off complained they would not be receiving any redundancy pay.

Oxford East MP Andrew Smith said: “This is very bad news. Every job loss is a tragedy.

“We would all hope that when recovery comes that these workers who have lost their jobs might be first in line to them back.”

A statement from BMW said: "While Mini has been weathering the economic downturn, it is not immune from the challenges of the current situation.

"Against this backdrop the company felt that a review of its shift patterns was necessary. This decision has not been taken lightly. The plant's union representatives have, of course, been involved in the discussions."

Talks between BMW firm and unions have been held for weeks over changing the current work pattern of three shifts a day for seven days a week.