The US-based software specialist, which supplies its products to the UK through master reseller ROI360, announced it was cutting 28 positions across its workforce, including seven contractors.

Other cost-cutting measures include salary and work hour reductions, which the company said it was making on management recommendation as to "how best to allocate resources without compromising the needs of current customers or the development of the product roadmap".

The announcement follows a difficult year for the software firm, in which it posted an operating loss of $2.4m in the three months to 30 June 2012 compared to a loss of $2.4m in the same period last year.

Revenue was down 6% to $1.9m in the same period compared to $2m in 2011, while overall cash balance was down $2.7m compared to $2.9m in 2011.

In a statement released by the company president and chief executive Pinhas Romik said: "In the last 18 months Pageflex was heavily engaged in fulfilling its commitments to its OEM partners, and customers, recently releasing major upgrades of our flagship products: version 8.0 of Storefront, and version 6.0 of iWay, which passed the stringent testing of our OEM partners."

"With the successful completion of our obligations to our OEM partners, we are now in a position to execute our new forward looking strategy. We have adjusted our staff and other expenditures allowing us to continue to provide quality service to our customers, to maintain our technological centres of excellence, and to keep our global sales & marketing force.

Romik said the restructure would ensure the company’s future growth and delivery of advanced new products to the market.

He added: "Our response to the uncertainties of global economy is austerity, combined with the vision for the future."

Pageflex recently announced that it was adding social media to its software portfolio with the launch of Pageflex version 8.0, which is aimed at printers, print managers and marketers to support web-to-print site management.

The company employs staff primarily in the US and Israel.