Communisis job losses loom as it cuts costs

The Leeds-based group, which has evolved from being a traditional print firm in recent years, said it is "aligning its business and proposition in a way that better suits the direction of its marketplace and the demands of its customers".

Communisis will close its Leicester facility to consolidate excess logistics capability into its Newcastle site. It will also reorganise its Leeds head office and senior management responsibilities, leading to job losses. It started consulting on these today.

Communisis said this will save it 4m a year, of which half will be reinvested in expanding to suit its new strategy.

Chief executive Andy Blundell said: "Our business is changing significantly as we move progressively towards higher-value services and develop our proposition as a marketing services provider.

"Whilst redundancies associated with this programme are regrettable, we will be reinvesting about half of the cost savings in the new skills needed to meet the increasing demands of our customers for innovative and cost effective solutions."

Communisis works with organisations on their marketing campaigns, doing everything from printing to targeted electronic mailouts. As well counting big finance firms among its customers, it has diversified to include the likes of Tesco, T-Mobile, William Hill, Ogilvy and Wolseley.

Communisis does not expect the changes to impact this year's pre-exceptional profits. Shares were up 5.5 per cent this morning.