Shares in the paper merchanting and office products group, which includes UK merchants Howard Smith and Robert Horne, plummeted 43% to 1.81 (EUR2.88) on the news.

But one analyst said the group was fortunate that its paper merchanting operations in the UK were still performing well, although he felt it would face a difficult 12 months if the current climate continued.

He blamed Buhrmanns problems on weaker-than-expected sales across its North American office products division.

Corporate communications manager Ewold de Bruijne said no decisions had been made, but that the company was reviewing what action would be taken, with job cuts likely across its business.

The group has said that although it is not in possession of the results for September, it anticipates a further slowdown in the fourth quarter.

The North American side of the business will probably bear the brunt of any job cuts, but de Bruijne would not be drawn as to whether any restructuring plans would involve European operations.

Buhrmann hopes to be in a better position to announce future plans when it issues its third-quarter results on 7 November.

Story by Andy Scott