The Graham Hunter shirt factory in Springtown Industrial Estate which laid off 30 people in May has put a further 20 members of staff on 90 days notice.

The cuts will bring the number of people employed at the factory to 50.

Meanwhile, 20 staff at the Fitness First gym on Strand Road will lose their jobs when the gym closes at the end of the month.

George Flooks, of Fitness First, said members will be able to transfer to Fitness First in Coleraine. Members will be able to cancel their membership if they decide not to transfer and prepaid members will receive their money back for the rest of their membership term.

"All staff at the Derry club will be offered redeployment within Fitness First," he added.

"We would like to thank all of our members, past and present for their support and enthusiasm during their time with the club. We've been very encouraged by the response we've received from the members, who have been very loyal, understanding and supportive."

Foyle MP Mark Durkan MLA said the job losses were a blow to the city. "The first priority is for the workers and ensuring that their redundancy payments will be prompt and smooth," he said.

Foyle MLA Martina Anderson said the job losses at the Graham Hunter shirt factory were yet another blow to the textile industry and local economy in the North West, "at a time when small to medium size companies are feeling the pressures from the world markets."