The loss of 700 jobs at Diageo, which produces Johnnie Walker whisky, is far more than a death blow to Kilmarnock - a town already beaten down by years of closures.

The loss of 700 jobs at Diageo, which produces Johnnie Walker whisky, is far more than a death blow to Kilmarnock - a town already beaten down by years of closures.

For many of the workers at the plant, which packaged the famous brand, it is a symbolic loss of one of the community's last remaining beacons of industry. The workers were sent home yesterday morning after the news was broken to them, but those that lingered later in the day were unequivocal in their contempt. One furious couple were too upset to discuss the news.

The plant kept alive the 198-year-old connection between Johnnie Walker and Kilmarnock. Workers entered the plant past two proud flagpoles and a sign proclaiming the Ayrshire town's right to consider itself on the world stage: "Diageo Global Supply - Kilmarnock".

Passers-by stopped to gaze at the factory's closed gates yesterday afternoon, and many were forced to consider the impact of the closure.

Nanette Bruce, co-owner of local firm TOA Taxis, warned the loss would "turn Kilmarnock into a ghost town".

"It's going to cost us a fortune," she said. "We do a lot of account work for them, and the closure will affect every industry - not that there's any industry left around here."

Bill Stewart, an engineering assessor at Kilmarnock College, said Diageo had long been one of the main employers of apprentices in town.

"Johnnie Walker takes in three or four of our students every year," he said. "It's the biggest employer in the area. Some people have been here all their lives."

The closure will even have a knock-on effect for charity. Staff and visitors to the plant had so far raised £6000 for Children 1st, a sign stated, and were aiming for many thousands pounds more.

Diageo's managing director, Bryan Donaghey, said he was not blind to the havoc the closure will wreak, but he maintained it was a necessary business decision to ensure the firm's long-term prosperity.

He said: "There's a long association between Johnnie Walker and the west of Scotland, and this is a sad day. We recognise it's a terrible loss for the town. We're a big employer, but there's also a strong emotional attachment."

Though Kilmarnock will bear the brunt of the losses, with around 700 jobs going from the town by 2011, employees in Glasgow will also feel the heat of Diageo's restructuring zeal.

Around 100 workers will be made redundant at the 200-year-old Port Dundas distillery, and 40 jobs will go from the nearby cooperage as operations move to Alloa. A further 80 jobs will be lost at Dundas House, and 30 jobs are to be cut at the Shieldhall packaging plant in Glasgow.

It may be of little consolation to those joining the dole queue, but other areas of Scotland will benefit. About 400 new jobs will be created in Fife - thanks mainly to an £86m expansion plan at the firm's facility in Leven.