WH Smith could be poised to sack hundreds of workers because it is not making enough money.

Share prices in the company, which has its UK headquarters in Swindon, have dropped by more than 17 per cent in the last three months and yesterday national newspapers were predicting jobs could be lost.

WH Smith employs about 1,500 people at two sites in Swindon one in Greenbridge, the other in Pipers Way, Old Town.

In October, the Evening Advertiser reported the firm had been suffering from a profits slump and flat sales, caused by a combination of hot weather in the summer, the trend for supermarkets to sell cheap CDs, and the downturn in air travel which hit its USA Travel Retail division.

It follows the announcement of disappointing figures in April this year, and April and October of last year.

City analysts believe that this Christmas's trading figures will be less than hoped for, which also follows an underperforming Christmas last year.

It is thought new chief executive Kate Swann will issue a profits warning in the new year, and that she intends to cut costs by making many people redundant.

WH Smith spokeswoman Louise Evans, said: "We are not in any position to comment on our trading performance."