Domino to cut 10% of workforce as spending slows

The Cambridge-based firm began consultations this morning over the redundancies, which will account for around 10% of its total headcount.

It said that the plan was a response to its expectation that recent low demand for its coding and marking products would continue into 2009. It will take a one-off charge of around £8m in its accounts for its financial year, which ends tomorrow (31 October), and expects to save around £10m annually from the cutbacks.

Group managing director Nigel Bond told Packaging News: “We keep hearing that we might be in recession or that we are going into recession. But the fact is that there is a global recession out there.

“As a result, banks are lending less and companies are planning less capex so the management is acting responsibly in view of that.”

He added that the cost reduction programme meant that the company “still expects to achieve what the City expects us to achieve”.

Domino had already reported difficult trading conditions during the summer in a trading statement published during September.

In its statement this morning, however, Domino said its financial position remained strong and that it would continue to look for acquisition opportunities as they arose. The firm has been growing through a number of acquisitions over the last year, which have included:

October 07 – Control Information Technology, €4m deal
November 07 – Belgian distributor, €4.3m deal
June 08 – Photon Energy, €4m deal
August 08 – Alternative Printing Services, €15.2m deal

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