The manufacturing giant move is in response to a fall in orders to below €500m (£467m)  in the fourth quarter of 2008/2009 – a drop on already weak orders of €560m in the previous quarter.

It anticipates the cuts will help save the group €400m by 2010/2011, compared to an original goal of saving €200m in the same period.

Heidelberg has cited an ongoing reluctance and hesitance to invest by printers, which has in turn, led the manufacturer to reduce its own capacity.

The cuts, which will take place throughout research and development, production, administration and sales, are estimated to cost Heidelberg €170-€190m to implement.

Heidelberg chief executive Bernhard Schreier, said despite introducing a cost-cutting program last year, there has been a further slump in demand and "there are no signs of any improvement in the short term."

He added: "In this situation, it is up to the management team to maintain the company’s competitiveness and efficiency.

"We have made the necessary structural adjustments to optimise our company’s earnings on a sustainable basis and ensure it is primed for the upturn when it comes."

In addition, the manufacturer will terminate its collective agreement at the end of June this year.

"Given the worldwide financial market crisis, we regret that we are left with no alternative but to terminate the agreement.

"This is the only way we can ensure our competitiveness and efficiency, something that is also in our workforce’s interests," added Schreier.

It is unclear at present how the UK workforce will be affected by the announcement.

More to follow…

Heidelberg announces 2,500 job cuts

Heidelberg axes 40 UK jobs

Heidelberg closes Leeds site