Heidelberger Druckmaschinen AG has launched its new business structure to reduce costs – which will also cut 850 jobs worldwide.
As of 1 April the company has split into three divisions – Heidelberg Equipment, Heidelberg Services and Heidelberg Financial Services.
Heidelberg CEO Bernhard Schreier said: “We are starting the new financial year with a leaner and more efficient organization. This will enable us to also provide our customers all over the world with a faster and more focused service.
“The new structure has paved the way for Heidelberg to be even more powerful in the strategic core businesses of equipment and services.”
It is hoped the structural and personnel cuts will result in around €80 million of savings annually, with €60 million aimed to be saved this financial year.
However the job cuts are expected to cost around €30 million in 2010/11, and a further €20 million for the year after. 450 administrative and sales jobs will be cut internationally, while 400 production jobs will also go, primarily a the Wiesloch/Walldorf site.
The new structure is aimed at the effects of the global recession, and Heidelberg hopes it will help it to break even this year. It recently announced a high in incoming orders, but sales were still down by 23 percent year on year.
“The order situation in the print media industry has stabilised over recent months,” said Schreier.
He added: “The higher demand is still coming mainly from emerging markets such as China and Brazil. There is no prospect of a significant increase in the industry’s investment volume in 2010.”