Hundreds of UK jobs are at risk at Electrolux, which today unveiled a profits warning in the wake of poor trading.

The Swedish giant's move will raise fears that rivals will follow suit.It is cutting more than 3000 positions worldwide, 5% of its workforce, in response to a "sharp decline" in sales.

Electrolux, the biggest maker of kitchen appliances in the world, employs 600 in the UK. It said in a statement: "Demand for appliances in Europe and North America declined considerably in the two last weeks of November. The weak market has had a negative impact on Electrolux sales volumes and products mix during the fourth quarter."

The company has abandoned its minimum profit target for the year of 3.3 billion kronor (£230 million), and could fall into the red as the year ends. Its statement added: "As sales in December are seasonally low, there is a risk that operating income for the month will be slightly negative."

The news will raise questions over the future of DSG International in particular. John Browett, the DSG chief executive who was brought in from Tesco to save the company, has just admitted that it will be four years before trading recovers.

It is an open question in the City whether he will get that long, as the shares keep falling. This in turn makes lenders and suppliers nervous that DSG, which owns Currys and PC World, can survive.

DSG shares are down from more than 100p earlier this year to just 14.75p today. Browett says the recession will last for all of 2009, and will only end in 2010 "if we're lucky".

Electrolux said it would "intensify" cost-saving activities. The job cuts alone should save it £80 million a year. It is moving production to "low-cost countries", which it concedes will "further reduce the number of employees" in the future.

Electrical goods makers worldwide are struggling as the recession hits demand for their products. In the US, Whirlpool is cutting 5000 jobs.