Over the past 12 months, the German press manufacturer has announced plans to cut 5,000 jobs by the end of 2011. In October last year, it said that it would cut 2,500, followed by another announcement doubling that figure in March 2009.

Following the discussions with employee representatives, that figure has been cut to 4,000 and will save the company around €400m (£367m) a year, following the implementation of the plan.

Bernhard Schreier, chief executive of Heidelberg, said that a "reasonable solution for everyone involved had been found".

"These painful cuts are essential to counter the effects of the most serious crisis of our industry and create a stable position for the company's future," he added.

Heidelberg UK is unaffected by the news having already made the cuts that it needed to as part of the group wide cost cutting exercise.

Including early retirement, natural wastage and redundancy, the UK operation has shed around 100 jobs to 350.