Boots are expected to announce up to 1,000 job cuts at its head office under cost-cutting plans.
Staff meetings are being held at the site in Nottingham, Britain, to give employees the news. Boots refused to comment ahead of any announcement, stressing that staff would be told first. Around 3,000 staff are employed at the head office.
The move is part of a programme by Boots called Getting Into Shape, which aims to make £100 million sterling worth of savings by the 2005/6 financial year.
Chief executive Richard Baker, who joined the group from Asda last year, was expected to make a formal announcement following the staff meetings.
The news will be a big blow despite official figures yesterday showing that unemployment continues to fall and the number of people in work is at near-record levels.