LOTTERY operator Camelot plans to close its North-East regional office as part of a series of cuts which would lead to 80 job losses nationally.

The small Sunderland office, with a workforce of only eight, is earmarked for closure along with other regional centres at Leeds, Birmingham, Exeter, Reigate and London.

Thirty jobs are destined to be axed at Camelot headquarters, in Watford, while other posts may go at its Aintree call centre, in Merseyside.

The proposals are subject to a 28-day consultation period, after which the final decision is expected to result in confirmation of the job cuts and closures.

Camelot chief executive Dianne Thompson announced the plans in the wake of a five per cent drop in sales in the first half of the year, although the company claims to be confident it will achieve growth in coming years.

The cuts, if followed through, would represent about eight per cent of Camelot's national workforce, of 980.

Camelot claims the cost-saving measures are aimed at maintaining efficiency in running the Lottery, renamed Lotto in May, to ensure maximum funds are generated for good causes.

The Sunderland office, on the Doxford International Business Park, opened after the launch of the lottery in 1994.

Winners of prizes of more than £10,000 are dealt with by staff at Sunderland premises.

A Camelot spokesperson said last night that winners would still be able speak to the call centre at Aintree, while negotiations are under way with the Post Office to increase the number of pay-out facilities in the Lottery network.