The group, which is already in the process of making 450 staff redundant – equivalent to 20% of its workforce – said yesterday that the extra measures will increase the cost of its reorganisation programme from €16.6m to €21.3m.
In its third-quarter business update, it said volumes at the group were down just 6%. However, it has experienced a 10% cut in margins, describing the price erosion it has experienced as "immense". Consequently, net result would be "sharply negative", it warned.
The group estimated that volumes in the western European market were down 20% this year, which it said was "the graphic industry's new nadir". It claimed that overcapacity was running at "25% or even more".
Despite positive economic news from Europe, including the news this morning that France's economy grew by 0.3% in the past quarter, chief executive John Caris said that he did not envisage a recovery until the fourth quarter of 2010.
"2010 will be a very difficult year and even when the recovery comes, we will not go back to the pre-2008 volumes," he predicted.
Within RSDB's three divisions: magazine, catalogues and retail door-to-door packs, its magazine division was hit the hardest.
"There has been a sharp drop in the number of advertising pages, with a corresponding cut in editorial pages," Caris said.
He added that the current web market was more difficult than gravure. But he said that the retail pack door-to-door sector, a larger market in mainland Europe than in the UK, was "reasonably stable".
However, MediaPartners Group, its multimedia division, continued to grow during the recession and the group has shelved plans to dispose of the business.
Caris once more reaffirmed his commitment to pan-European consolidation in print, hinting that a deal, possibly involving the group, may be nearing.
"Market circumstances have moved on and accelerated the need for consolidation, however, due to the lack of finance, the only solution is a merger rather than an acquisition," he said, adding that he was "always talking" to various parties.
"I hope that we will play a part in the dance," he said.
