Sussex workers face an uncertain future today after mobile phone giant Ericsson announced plans to shed 5,000 jobs worldwide.

The firm employs about 300 people at its European headquarters in Burgess Hill and 40 at offices in Trafalgar Place, Brighton.

The company today reported a bigger-than-expected quarterly loss and posted a gloomy outlook.

It means the group's worldwide workforce will be reduced to around 60,000 jobs by the end of 2003, instead of the previous target of around 65,000.

The company announced in April it was planning to shed 17,000 jobs worldwide after poor financial results.

Ericsson has not been able to comment yet on the possible impact on UK staff.

But in April bosses at the Burgess Hill office admitted that job losses were expected and today's news means more could possibly go.

The company is one of the biggest employers in Burgess Hill and businesses in the town are worried the losses could have a knock-on effect on local trade.

A large number of people employed at the company come from outside the area but regularly use the town centre shops.

Chief executive Kurt Hellstroem said in a statement: "In light of our lowered market expectations for this year, we have intensified the cost reductions that we started last year and are substantially ahead of schedule."

He said the group planned to return to profit at some point in 2003.

For the three months to the end of June, the group reported a pre-tax loss of £240 million - worse than market expectations.

Ericsson said cost-cutting measures were having an effect but it warned that demand for mobile systems equipment this year will be even worse than it had anticipated.

Shares in the group, traded on the Stockholm bourse, plunged on their opening following the statement.