Pilkington is to shed more than 3,850 jobs worldwide over the next 18 months.

The company said that most of the redundancies would take place in Europe and North and South America.

Chief executive Paolo Scaroni said that only 100 jobs would go in the UK.

He added that Pilkington wants to reduce its staff worldwide to less than 30,000 by March 2000.

The glassmakers reported half-year pre-tax profits of £66m, compared with £74m last year. The dividend remained at £1.75, in line with analysts' estimates.

Earnings were depressed by a strike in North America at General Motors which cost £7m.

The loss of 5,000 jobs since March 1997 - some 1,530 of which have disappeared since April - has led to a substantial drop reduction in overheads.

In June, Pilkington reported higher than expected exceptional costs of £225m, which had wiped out any profits.

Drop in overheads

The company said: "Due to the progress we have made to date, we have increased the scope of our overhead reduction programme to be achieved by March 1999 by over £20m per annum, with another £30m per annum reduction to come in the following year."

"The reorganisation of our downstream business in Europe is on course with the number of branches reduced by 68 from 180 to 112," it added.

Chairman Nigel Rudd said: "We will report progress in the current year," with help from the cost cuts.