AUCTION house group Sotheby's is to axe 287 jobs in a bid to claw back costs.

The cuts will see US-based Sotheby's, owner of the London auction house, trim its workforce by 14 per cent to 1,765.

Sotheby's is aiming to achieve annual savings of £34.6m after its costly legal battle over price-fixing pushed it into the red.

President and chief executive Bill Ruprecht said the savings would be fully realised in 2002. He added: "Following these changes we believe that we will be a stronger and more profitable organisation."

Sotheby's has 98 offices in 38 countries, with its most important sales rooms in New York and London.

The group, which can trace its roots back to 1744, reported a final loss of £142m last year.

The price-fixing scandal centred around disclosures that Sotheby's privately agreed buyers' and sellers' commission rates with rival Christie's.

The group will take an £8.9m restructuring charge in the third quarter, the bulk of which will cover severance costs.