MORE than 100 jobs at a North-East factory could be under threat, following an announcement yesterday by struggling engineering group ABB.

The Swiss-Swedish firm, which employs 120 people at its Sunderland factory, said it could have to cut 10,000 jobs to slash costs.

Spokeswoman Karen Wilds told The Northern Echo it was too early to say whether jobs would be lost at the Wearside plant, which makes low voltage electrical products.

"We haven't really started the investigation into where the cuts will be," she said.

ABB is to restructure its business in the wake of a shock profits warning last month which prompted ratings downgrades and a share slump.

Two weeks ago the company unveiled plans to reduce its divisions from five to three to simplify the organisation, increase efficiency and cut costs.

It said yesterday that the programme to lower costs by four per cent of revenues would start on January 1 and would be completed in 18 months.

It said two-thirds of cost reductions would come from job cuts and one-third from other actions, however it said it was not possible yet to give job reduction figures.

A spokesman for the company confirmed that ABB's chairman and chief executive Jurgen Dormann said although the exact figure was yet unclear it could be in the range of 10,000. In total, the group employs about 146,000 staff, with 6,800 in 50 towns and cities across the UK.

In a statement, Mr Dormann said: "We are taking forceful action to improve operational performance and cash flow.

"We need a rapid and radical change. We are taking the measures needed to optimise the business, build on our strong product and customer base, and technological leadership positions."