Citing an “expected deterioration in the external environment and the already apparent contraction in some advertising budgets” as catalysts for the decision, the cuts represent just over 5% of the company’s 500-plus workforce.

“Through no fault of their own, these jobs no longer exist and it’s always the hardest part of restructuring,” the company said in a statement.

“Whilst the CPI Group has done much to extract synergies in consolidating the ‘back end functional areas’ of its significant national foot print, the recent downturn brought with it new reason to look at the sales and marketing costs of its merchant businesses.”

‘Phase One’ of the restructure will see the company’s fine paper operations handled by a single regional state leader, sales manager, sales team and customer service team respectively.

“The challenge for CPI Group was the underlying duplication in two areas of mainstream ‘commodity’ fine paper distribution.”

“It’s about combining the best of both these business units whilst removing cost simultaneously and being in good shape for the second half year commencing January.”

The company added that ‘phase two’ of the restructure “will be canvassed with customers in the new year and will come after more analysis of what is best in our commodity merchants for our customers, and then marked for future enhancement.”

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