The company said a series of measures had been announced to ensure the business remains successful through the recession.

Staff will be offered a choice of revised working arrangements over the coming weeks that include reduced hours, two weeks unpaid leave and sabbaticals.

Dave Allen, regional president for Paperlinx, said: "These are unprecedented times for our industry and for the global economy as a whole.

"It was impossible to have forecast this fall in demand, but we are not alone in the taking of such actions and we believe they are a necessary act to ensure we continue to respond positively to the challenges we face in the future."

He said the measures are designed to allow the group to align its cost base without affecting the service offered to customers.

The move came as PrintWeek revealed that the company was in talks with Unite over a sole-union agreement.

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Simpson re-elected as Unite's joint general secretary