Multinational company Electrocomponents is to sell its 28,000 sq ft head office in Oxford as part of a cost-cutting exercise.

Ian Mason, chief executive of the company, which this week announced £35.6m pre-tax profits, said: "With our expansion overseas we find we do not need such a large head office."

Now the firm plans to move before the end of December from the office it owns at 5000 Oxford Business Park South, to an office half the size at 8050 Oxford Business Park North, which it will rent.

The company, which moved its headquarters from Peterborough to Oxford in 1999, plans to achieved annualised savings of £10m by 2008.

The sale of the office will contribute £1m a year towards that total. Its profits for the half year ending September 30 were £2m higher than last year.

Mr Mason added that there had been 149 UK job losses in the past year but that none of the jobs of 70 people employed in Oxford were on the line.

Parts distribution company Electrocomponents employs 5,500 people worldwide, 2,200 of whom work in UK, mostly in Corby.

The company distributes more than 300,000 products in 26 countries and has an £800m annual turnover.