Schreier also said a "comprehensive programme for permanent cost reduction for 2004 and beyond" had been agreed, and that Heidelberg would have to "delay large capital investment, and reduce other costs such as travel".
Litho Supplies joint managing director Gerry Mulvaney said: "It's bad news for everyone in the industry as Heidelberg is a good barometer. It must be worrying for people who thought they were safe working for an industry leader."
Heidelberg said it would launch a cost-saving programme in September, when it warned of a 10% fall in sales this year (PrintWeek, 6 September).
Schreier told PrintWeek this week that sales from Graph Expo earlier this month were down 27% from the last Graph Expo in 2000 to around 80m.
Although the group has no manufacturing sites in the UK, Schreier said there would be some cuts in administration.
The relocation of NexPress manufacturing to Rochester in the US means 770 job cuts at the former Hell site in Kiel, while 880 jobs will be lost in admin cuts at both Heidelberg and Wiesloch. Platesetter assembly will also transfer from Kiel to Wiesloch.
Although there will be no production left in Kiel, Schreier said the plant would be retained to house 650 staff in research and development for workflow and the NexPress digital press. But it could close at a later date, he added.
Heidelberg will also merge its Ludwigsburg and Mhlhausen post-press sites into a new joint facility in the Stuttgart area.
Production of its digital black-and-white copiers and printers will move from Mhlhausen to Rochester, with 150 jobs going at Ludwigsburg and Mhlhausen.
Heidelberg will streamline its Web Systems division to "focus on new products and technologies manufactured over the past three to four years".
Although Schreier would not reveal what products would be dropped, he said Heidelberg was committed to its newspaper technology, and that the M600 web press was one of its most successful products. Another 200 jobs in the US, France and the Netherlands will go.
MAN Roland is also in talks with employees in Germany over cost-cutting measures, but a spokesman said any job losses would be "nowhere near the scale of Heidelberg".
Story by Andy Scott
