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Heidelberg has said it will cut a further 850 jobs worldwide as it targets a break-even operating result in the coming financial year.

The German press giant said it has started the year with a "leaner and more efficient organisation", but that it would cut 450 administrative and sales roles along with 400 positions at its Wiesloch/Walldorf manufacturing site.

Heidelberg said the cuts would reduce annual costs by €60m ($79m) in 2010/11.

The job losses are expected to result in restructuring costs of €30m in the current financial year (to 31 March 2010). As part of the restructuring programme that was announced in 2009, the business will now be split into the Heidelberg Equipment, Heidelberg Services and Heidelberg Financial Services divisions.

Chief executive Bernhard Schreier said: "The order situation in the print media industry has stabilised over recent months. The higher demand is still coming mainly from emerging markets, such as China and Brazil. There is no prospect of a significant increase in the industry's investment volume in 2010."

He added that, as a result, the level of sales at which the company achieves an operational break-even result has been lowered to less than €2.5bn.