Chief executive Paddy Cronin cited long-term decline in the bingo market and its transition to digital devices as well as a sharp drop in charity direct mailings at the end of 2015 as the reason for the drastic restructure.

“The changes will affect every area of the business at every level,” Cronin told PrintWeek. “Our intention is to try to reduce our staffing costs to refocus the business on our core services. Essentially we are right-sizing. It’s a horrible expression, but it’s the truth.”

The consultation is expected to result in around 80 job losses, he confirmed, adding that the intention was to remain based at the 150-year old firm’s site in Sunderland, “with some reorganisation of equipment”. 

Founded 150 years ago, Edwardthompson traditionally manufactures wholesale bingo supplies including colour printed bingo tickets, novelty bingo dabbers and markers.

It has also diversified into the direct mail market, predominantly serving third sector clients as well as bingo mailings and commercial printing including posters, brochures and POS for bingo. 

In the financial year 2014/15 the business posted an operating loss of £1.1m (2013/14: £834,000) on a turnover of £8.7m (2013/14: £11.8m), according to the last set of accounts posted on Companies House. 

Last year the business invested more than £400,000 in an equipment upgrade, including kit from Duplo and Ricoh, a Sandem Quantum web press and a Kodak Prosper S10 Imprinting System. 

Cronin said that despite the move to reduce headcount, the new equipment had made the business more efficient and more cost effective. As part of the review, he said, the firm was looking at investing in more innovative products in order to stay competitive and better serve the firm’s core markets. 

“We are concentrating on our most efficient areas and will continue to focus on supporting bingo, DM and commercial print. We will be looking to the future to maximise the most profitable areas of the business. So we are looking at IT products, finishing for our web press, enhancements for digital print and different gluing lines,” Cronin said.

“The drop-off in charity sector mailing really hurt us over Christmas and although business is doing better since then, it showed us that we really needed to rethink what we are doing and to do it in the most efficient way possible.”