Chief executive Jouko Jaakkola said the job cuts would be part of a range of cost cutting measures aimed at saving the company 136.5m (E200m) by 2006.
It is likely to affect its logistics, sales, marketing, purchasing and production operations, although no specific figures or locations have yet been given.
M-real employs just over 2,000 staff in the UK alone, out of a total of 19,636 staff across the global group.
The company reported a fall in profitability for all its business areas for the 12 months to the end of December 2003, apart from its paper merchanting arm, the Map Merchant Group, with M-real warning of further negative results this year (PrintWeek 8 January).
There are some signs of improved economic growth, but they are not yet feeding into demand for paper and paperboard, said Jaakkola.
The warnings came as M-real announced its year-end results for 2003, which saw pre-tax losses of 65m, a reversal on the previous years profits of 190m.
Sales fell 8% on the previous year to 4bn, with operating profits slashed from 221m to just over 50m.
He confirmed that price increases are also planned with effect from 1 March this year, of between 5%-8% across its product ranges, with announcements currently being put out by the group and its merchant companies.
Although things had improved at Map, he said its results were still unsatisfactory, but denied any discussions with regard to a possible disposal of operations.
Sales for its Map Merchant Group fell by 10% to 88m, whilst its operating losses were halved to just over 4m for 2003.
by Andy Scott
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