It will restructure supply chain operations in Northern and Central Europe, creating a regional centre in Finland and two regional centres in Germany.
The changes will increase efficiency and profitability in the company's operations, according to Bernd Eikens, senior vice president of supply chain at UPM Paper Business Group.
When the announced measures are completed as planned, European staff will be reduced by around 100 during 2009 and 2010.
A spokesman said that there would be a limited amount of people affected in the UK following the changes.
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UPM-Kymmene records eco paper demand rise