News in the printing industry has been rather gloomy lately, with manroland filing for insolvency in December, and the official announcement of Kodak's bankruptcy making news last week. It seems that other large companies, wanting to ensure their continued survival, are taking note of today's difficult economic environment by reorganizing and trimming down their organizations to cut costs, and finding ways to increase productivity.

Heidelberg has recently announced 2,000 job cuts under its "Focus 2012" efficiency program. The company hopes this will free up around 180 million Euros in the financial year 2013/14.

Out of Heidelberg's more than 15,600 employees worldwide, up to 1,200 will lose their jobs in Germany, as will an expected 800 more around the world. These will be positions in production, development, administrative, sales and marketing.

"The ongoing economic uncertainties will continue to put a brake on the industry's recovery. We are seeing weaker demand in industrialized nations but stronger growth potential in emerging markets," said Heidelberg CEO Bernhard Schreier. "Focus 2012 will position Heidelberg accordingly, above all by significantly reducing production capacities and by adjusting sales activities to the regional market changes. This will create the basis and efficient structures needed for profitable business development."

Focus 2012 is intended to reduce capacity and cut sales, marketing and structural costs. Most of the measures will be initiated and implemented quickly before the end of calendar year 2012. The aim is to allow the company to "independently continue to build on its leading position in the future."

Production capacities at Heidelberg will be reduced by around 15 percent. R&D expenditures will be cut by reducing capacities, optimizing processes and reprioritizing projects. Sales and marketing activities will be pooled and individual markets will be restructured. The company has stressed that comprehensive support for the global customer base will still be ensured.