The company will also go on a 50m euro (£40m) cost-cutting spree in an effort to get itself back on track.

However, Bron Curley, managing director of Océ UK, said the British arm of the business was not expected to be affected by the job cuts.

Océ profits have fallen to just 5.5m euro (£4.4m), down from 18.3m euro (£14.5m) a year ago.

The company lays the blame for most of the problems at the door of the US economic slowdown, but also believes the grim economic conditions are now starting to show their effects in the UK and Europe.

"Like other parts of Océ's business across Europe, UK customers in certain sectors of the economy are currently going through a challenging time and we are not immune from the effects this could have our business," Curley said.

Despite this, he remained optimistic about the rest of the year and said he expects the UK side of the business to hit its targets for 2008.

The latest round of cuts comes on the back of an 80m euro (£63m) belt tightening exercise the company started in April, which is expected to lead to the loss of 350 jobs. The company says it has already trimmed 20m euro (£16m) off this figure in the first half of 2008 and cut 280 of the 350 jobs.

Shares in the company were down by nearly a fifth in the morning following the announcement.