Pace Micro Technology, manufacturer of satellite television receivers, is expected to make 150 of its 1,000 staff redundant as part of a drive to cut costs by £5m. Up to 90 of the lost jobs will be in the UK.
The redundancies will not affect the company’s plans to open a second software development facility in north London at the end of March. It will employ up to 15 software engineers, bringing the development team to more than 200 engineers.
Last month Pace – whose shares hit 241.5p at the end of 1996 – reported pre-tax losses of £12.3m. Its shares stood at 32p early this week.
The company faces a number of problems, not least of which is the delay in the introduction of digital TV in Britain.
Pace has had to put provisions of up to £10m aside which include cover for royalties for set-top boxes, changes in technology in Europe, and unresolved commercial disputes.
Malcolm Miller, chief executive, said that while he had ‘total confidence in the company’s long-term future, in the short term Pace has to take action to reduce its cost base’.