The measures form part of the company's Focus 2012 efficiency drive that it anticipates will reduce capacity and costs over the next two years.

Heidelberg said it will cut production capacities by around 15 percent while service capacities in respective regions will be tailored in line with the manufacturer's expected medium-term level of sales.

The press giant will also streamline its research and development spend by reducing capacity and optimising internal R&D processes.

In addition, Heidelberg will "substantially" reduce its sales, marketing, and structural costs by pooling sales and marketing activities as well as restructuring individual markets.

According to the manufacturer, up to 2,000 jobs will be cut worldwide. The majority of these, 1,200, will take place in Germany and impact production, development, administrative, sales, and marketing functionalities.

An additional 800 positions from outside Germany are set to be cut from its global 15,666 headcount. Heidelberg said the measures would cost €150m to implement.

Bernhard Schreier, chief executive of Heidelberg, said the ongoing economic uncertainties continue to put a brake on the industry's recovery with weaker demand evident in industrialized countries but potential growth in emerging markets.

He added: "Focus 2012 will position Heidelberg accordingly, above all by significantly reducing production capacities and by adjusting sales activities to the regional market changes.

"This will create the basis and efficient structures needed for profitable business development."

The announcement comes on the back of the company's preliminary third quarter results, which recorded sales of €630m for the three months from 1 October to 31 December.

Incoming orders totalled €640m which was down on the previous quarter's €688m. Operating result for the quarter, excluding special items was down from €5m to €2m.

The company's share price was up slightly to €1.68 at the time of writing.





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