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Axe drops on supply staff around Australia

Tuesday, 02 December 2008
By Print 21 Online Article

Most of Australia’s major suppliers to the printing industry have been downsizing their workforces in a recent cost-cutting spate that looks set to continue into 2009.

This week CPI was the latest to announce that 28 positions within the company had been made redundant. Lachlan Duncan, company secretary described the move as a necessary cost-saving measure.

"This brings the total staff savings since 1 July to more than 10 per cent of the total staff base and the company remains on track for the targeted cost savings over the next two years of 10 per cent costs, or some $8.5 million," Duncan said in a statement.

In addition to downsizing its staff, CPI has also merged its two paper merchants two of its businesses, CPI Papers and Edwards Dunlop Papers, together "in response to the worsening economic environment." The move is part of a general restructuring as fears of a tough 2009 hit home.

Almost all supply side companies have downsized in the face of the looming recession. Heidelberg Australia, Kodak Australia and the Currie Group have cut numbers in recent weeks, while Agfa took similar action earlier in the year.

There are fears that the service infrastructure of the industry will be permanently weakened if the cuts continue. However, most companies, especially equipment suppliers, are emphasising that the cuts are not to service personnel.

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