Global Graphics has shed 54 staff from its hardware division in the UK and US in the second quarter as part of cost-saving measures.


So far this year it has cut 72 staff in total, all in the UK and US, and expects to lay off at least another 35 staff by the end of the year including in continental Europe.
It is looking at the possibility of shedding a further 50 staff by outsourcing some manufacturing.


Hardware sales fell 18% to 8.4m (e13.7m) across litho and flexo products primarily in the US, but also in Europe. The division produced a net loss of 876,000.
Software sales rose 16% to 3.9m, although the division still produced a loss of 862,000. During the quarter it increased staff by 10 across R&D and sales for its PDF and MaxWorkFlow products.


It will announce significant new products and customers during the Print 01 and Seybold shows next month.
For the whole group sales for the second quarter were down 4% to 13.1m with net loss up 138% to 1.8m.


I believe the fourth quarter will be substantially better than the second and third, said chairman and chief executive Johan Volckaerts. Our OEMs are more confident of sales in October to December, but it is impossible to predict.


Story by Barney Cox