Bezier announced to its staff on Friday (22 June) that its Leicester manufacturing site is being consolidated, resulting in the possible loss of 131 jobs.
The decision follows a long-term review of Bezier’s business operations, which found that manufacturing and logistics operations were "inefficient", according to the board.
Bezier said that the review confirmed that "we can use our space more efficiently, resulting in a leaner, more competitive organisation, essential in today’s competitive market."
The retail and marketing services company said it was to move some of its operations across to its purpose-built Wakefield plant, close to the M1 and M62, to "eliminate duplication and reduce overheads".
The company proposed that restructuring would begin in October 2012, but plans to retain part of the existing Leicester building for its design and sales office.
A 90-day formal consultation with employees has begun to clarify the impact on jobs. Bezier confirmed that jobs in departments dealing with sales, commercial, creative, development, permanent and promotional prototyping were secure and will remain within a suitable Leicester facility.
It is proposed that around 50 new production roles will be established at the Wakefield plant, and although it is unclear where staff will be sourced from, Bezier said it is "the company’s desire to redeploy its employees into other areas of the business wherever possible".
An internal message circulated to employees said: "There is never a good time to have to communicate such a proposal and we felt that people needed to know immediately."
Bezier CEO James Buckley added: "It is our ambition to grow the business significantly, and this proposal is essential in ensuring we continue to deliver exceptional service and cost effectiveness for our clients.
"We would clearly be saddened to lose some of our employees given the commitment and expertise of the team in Leicester."
Bezier customers are being reassured that they should not notice any impact on their services and the procurement team is discussing adjustments with suppliers.
Over the past six months, the company has restructured its senior management team, appointing James Buckley as chief executive and Adrian Lamb as financial director.
Bezier also received a £118,500 fine from the HSE in May following the death of a worker at its Wakefield plant.