A restructuring programme at Domtar Inc will see the loss of 415 jobs between now and 2006.
However, the redundancies – mainly in Canada – will enable the company to save C$50m a year as it struggles to combat the stronger Canadian dollar and lower selling prices.
Domtar lost C$44m in the first quarter, compared with C$27m profits a year earlier. First quarter sales dropped to C$1.2bn from C$1.39bn, but improvements are expected, aided by the job cuts, a strong order book and price increases on some products.
