Apple is one of the biggest clients for Wolfson's chips
The boss of an Edinburgh company which makes chips for Apple's iPhone has said there are likely to be job losses.
Wolfson Microelectronics, which employs 370 staff, has seen profits fall since losing a contract to supply chips for Apple's latest MP3 players.
Chief executive Dave Shrigley said costs would have to be cut in some areas of the business and blamed the global economic downturn.
The job losses were expected to be announced to staff on Tuesday.
A fall in demand for consumer electronics is being blamed for the drop in profits.
Mr Shrigley said: "Our ultimate business is determined by how many systems are sold to consumers. As a result we plan a review of non-research and development costs."
Shares in the company have fallen 40% during 2008.