Paper merchant and packaging supplier PaperlinX will cut 75 jobs in Germany and 65 in the United Kingdom as it continues to restructure its operations.

The redundancies will take effect in the second half of the current financial year.

PaperlinX said jobs would go in Germany as it consolidates a number of warehouses and sales offices into a central warehouse in Biebesheim.

In the UK, PaperlinX will close sites in Nottingham, Sheffield and Leeds, and move to a central information technology platform.

The changes are the latest in the company’s restructuring over the past six months, which in total have resulted in the loss of 340 full time employees, or 8.4 per cent of its workforce.

A pre-tax restructuring charge of about $9.5 million will be included in PaperlinX’s accounts for the six months to December 31.

Further charges are expected in the second half of the 2013/14 financial year as the company seeks further cost cuts.

PaperlinX also confirmed its previous guidance of marginally profitable underlying earnings for the 2013/14 financial year.

It expects to realise an underlying earnings loss in the six months to December 31 of about $10 million to $11 million, which would compare to a loss of $13.7 million in the prior corresponding period.

Shares in PaperlinX were up 0.2 cents at 4.5 cents at 1030 AEDT.