Paperlinx UK to enter consultation with staff over consolidation

Paper merchant Paperlinx is set to go into consultation with employees over a raft of back-office changes designed to reduce operating costs in the UK.

While there are no plans to merge the group's three UK operating companies, Robert Horne Group, The Paper Company and Howard Smith Paper Group, PrintWeek understands that the move will involve the consolidation of back-office areas such as HR, as well as sales and management teams.

Staff were informed at the end of last week, while a letter dated 30 June was also sent out to customers regarding the changes.

The consolidation will build on the shared services model launched by Delivery Co – Paperlinx's single logistics organisation that supports all three merchants in the UK.

Meanwhile, the overall size of the sales and management teams will be reduced to be "better aligned to the market while ensuring the most effective level of service for customers".

At this stage, Paperlinx has not commented on the number of roles that will be affected by the consultation at the 1,760-employee £750m-turnover company.

A statement from the company said that the move was "expected to reduce overall headcount across the three businesses, although at this stage no numbers have been confirmed". 

Executive vice president of Paperlinx Dave Allen said: "It is an essential step in order for us to continue to win the battle for Robert Horne, Howard Smith and The Paper Company to be the customer’s first choice in the markets we operate in today and in the future."