Bradford hi-tech firm Pace Micro Technology is to make 150 workers redundant as part of a bid to save £5 million.

In the first round of major job losses at Pace, 90 jobs will go from the 900 currently at the company's headquarters at Salts Mill, Saltaire, Bradford.

The remaining 60 jobs - out of the 1,000 the firm currently employs - will go at divisions of Pace outside the UK.

Digital television's failure to take off in a big way globally and in the UK has been blamed for the loss of business which has brought about the job losses.

But news of the job losses was tempered with today's announcement that Pace had won a substantial order for digital set-top boxes from BSkyB.

Pace chief executive Malcolm Miller said: "We are on track and have the ability to get to market first with a set-top box that fully meets BSkyB's requirements."

Pace has given the workforce 30 days' notice of redundancies and talks are being held with an employees' consultative committee about where the axe will fall.

A company spokesman was unable to say today exactly where the jobs would be lost.

The redundancies have come about following a review of the business by Mr Miller and finance director John Dyson over the last few months.

The announcement follows the firm's first ever loss - amounting to £12 million - since it was launched from a room in the home of co-founder David Hood in 1982.

Nineteen jobs were lost at the company when its share price plunged by 61p in June last year. The price now stands at about 30p.

Mr Miller said today: "In the company's latest reporting period, revenues were lower than expected and margins were eroded. While I have total confidence in the company's long-term future, in the short-term Pace has to take action to reduce its cost base.

"In the difficult period ahead, I know that we can continue to rely on the support of every one of our employees to ensure that we continue to give our customers the best possible service as we move the company back into profit."

An assembly-line worker, who refused to be named, said: "No one knows what's going on. We were all given a memo today saying that 90 jobs were going in the UK and 60 abroad. But we've no idea whose job's on the line at the moment."

A development worker said: "We've been left in the lurch. All we know is the number of jobs that are to go.

"We're going to have to wait until the end of the month before we know exactly what's going on."

Other workers said there was a tense feeling among the workforce.

One said: "I've a feeling that most of the job losses will be among middle management, but no one can be sure."

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.