Creo Products has embarked on an efficiency drive to combat the effect of the global economic slowdown.


Chief executive Amos Michelson announced the firms plans, which include about 200 redundancies, when it released its third-quarter results (PrintWeek, 3 August).


"We completed a reasonably good quarter in light of the economic situation, and just missed our expectations," said Michelson. "The slowdown worldwide, but especially in Europe, means the fourth quarter will be more challenging the third quarter."


Sales were up 4.6% to 119m ($170m), and the company produced a net loss of 5.9m.


The redundancies are part of cost-cutting measures, which include senior staff taking a 10% pay cut in exchange for extra stock options. It expects to save 4.2m per quarter, although it will cost the company 2.8m in redundancy payments in the fourth quarter.


Three administration jobs were cut at CreoScitexs 85-staff UK operation. "No customer-facing staff have gone," said UK marketing manager Maria Machera. "Were not reducing sales people or engineers. Were still recruiting sales staff."


As well as cost-cutting measures the firm is hoping to weather the economic storm by launching lower-cost products aimed at smaller printing companies, an increased focus on sales and continuing to invest in R&D to speed up its time to market.


Story by Barney Cox