ATLANTA (AP) _ Interface Inc., one of the world's largest commercial carpet manufacturers, said Monday it will cut 850 jobs amid sluggish demand for its office products.

The company will take a $60 million pretax charge against third-quarter earnings, or 80 cents per share, for severance benefits and restructuring charges.

Atlanta-based Interface, which sells modular carpet, vinyl flooring and other products in more than 100 countries, also said it will leave the European broadloom market. The company also plans to consolidate some of its raised-access flooring operations and some dealer locations.

Not counting the restructuring charge, Interface expects to earn 1 cent to 3 cents per share on revenue of $255 million to $265 million. Analysts surveyed by Thomson Financial/First Call had expected the Atlanta-based Interface to earn a nickel per share before charges.

Interface said the reorganization, which is to be finished by the second quarter of 2002, is expected to save $25 million per year.

``While we cannot control our business climate, we can address the operations under our management,'' said Daniel T. Hendrix, Interface's president and chief executive.

Interface is the world's largest maker of carpet tiles under the Interface, Heuga, Bentley and Prince Street brands, and also sells broadloom and woven carpets.

Before the announcement, shares of Interface rose more than 5 percent, or 23 cents, to close at $4.53 on the Nasdaq Stock Market.

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On the Net:

Interface, http://www.interfaceinc.com