In addition to the job cuts, Heidelberg has introduced an "innovative working time concept", which will allow staff to voluntarily reduce their working hours by 57% on a permanent basis, with a corresponding cut in pay.

The German press manufacturer will compensate workers taking part in the scheme for part of their lost salary for a period of up to four years. Working hours for staff that volunteer for the scheme will be based on company requirements.

Heidelberg said that the working time concept was intended to reduce the total number of compulsory redundancies required to around 500 worldwide by October this year, with a third of these falling in its sales organisation.

Heidelberg chief executive Bernhard Schreier said: "Following constructive talks, management and employee representatives have agreed on a 'Heidelberg Way' – a strategy for adapting existing capacities to the order situation while still keeping as many staff and thus as much valuable know-how as possible at the company.

"The package of measures now agreed marks a new departure for everyone involved in the negotiations and demonstrates a great sense of responsibility on all sides."

Both measures are part of a package of cost-cutting measures designed to save €60m in the current financial year and a total of €80m in the 2011/2012 financial year. Together with the €400m of annualised cost savings achieved in 2009/2010, this will result in total savings of €480m by April 2012.

As of 30 June, Heidelberg had a workforce of 16,218 worldwide, of which 10,942 were based in Germany.