The Dundee-based company entered into a 30-day consultation on Tuesday evening as parent firm Flint Group attempts to plug losses of £2.5m during 2012 of its European Transfer Media Division.

The company, which employs 167 people at its Dundee site, blamed a "huge downturn in business" as print media consumers continued to switch to online channels. As a result, Flint Group said its Dundee factory was running at less than 50% capacity which it said was no longer sustainable.

The proposed job cuts are part of a business recovery plan, including a move to a five day shift pattern, which has been implemented by Flint Group.   

Dundee operations manager David Wood said the potential job losses were "extremely regrettable".

"But the current financial losses incurred at the site cannot continue and need to be addressed quickly in order to align staffing with current demand and make this a viable business," he added.

Wood said the company was committed to getting the site "back on track" and would seek to retain as many jobs as possible.

Wood said that in the event of the cuts all efforts would be made to reduce impact on the employees concerned as well as on the local economy.

The company is in discussions with Unite although the union body was not available for comment.

Keen to reassure customers Flint Group vice president of sales for Print Media Europe, Wolfgang Blumschein, said: "I am confident that service to our customers will not be impacted and can confirm that the Dundee operation will continue to have sufficient capacity to meet projected longer term demand and support the current product portfolio."

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