Despite an annual turnover of more than 130m, the Swedish envelope maker plans to give notice to around 100 members of its 1,200 staff in Scandinavia, the UK, Germany and Finland.

The initial cost of the cuts is estimated at 13m but is expected to save Bong approximately 13m on an annual basis.

"We haven't actually made the reductions as of yet," said UK business unit president Sue Hale. "They are likely to come over the next two weeks. We have upgraded machinery and increased efficiency, therefore the need for staff has been reduced."

Bong's UK operations are based in Milton Keynes,  where negotiations and discussions with the affected employees are due to
begin immediately.