It could be unsettling for the staff themselves and have an adverse effect on morale

Geoffrey Snow, Popes stockbrokers

Royal Doulton is holding its annual meeting on Thursday afternoon, when it is expected to make an announcement on its trading position.

A statement issued by the company blamed a slowdown in the world economy which has led to a series of interest rate cuts in America.

The statement said: "Despite the impact of good design and successful product launches made by Royal Doulton earlier this year, the company recognises that the international marketplace remains extremely challenging as the global economy continues to slow down."

'No final figure'

Royal Doulton stressed it did not expect all those eligible for the scheme to come forward and that not everyone who applied would be accepted.

A spokeswoman said no final figure on the total number of job losses had been set.

She said: "It does not mean all of those people who are eligible will be made redundant.

Royal Doulton is known worldwide

"Every individual case will be looked at on its own; we will not accept everybody."

Rival ceramics firm Wedgewood said in May that it would lay off 1,500 workers during an 18-day closure in August, followed by a four-day week lasting another six weeks.

It too blamed worldwide trading conditions.

In Royal Doulton's case the company said it had been hit despite the launch of new ranges such as Shore, Smoke and In Touch and the release of a new St George figure.

Pre-tax losses

The firm shed 45 posts with the closure of Holland Studio Craft in February.

It announced a further 93 job losses last month across its production plants at Baddeley Green, Longton and Burslem.

Geoffrey Snow, senior partner at Hanley-based stockbroker Popes, said: "This might not be viewed well because it is right across the board, apart from the retail sales division.

"It could be unsettling for the staff themselves and have an adverse effect on morale."

Royal Doulton recorded pre-tax losses for 2000 of �9.5m, compared to �29.6m in 1999.

Operating losses were cut back from �18.5m to �14.7m, although sales were down four per cent to �183m compared to �190.3m the year before.