Xaar launched its 1002 print-head for the industrial print market earlier this year

Xaar is set to reduce its staff by 160 employees – roughly 20 percent of its 800-strong workforce – following a steep decline in revenue.

The fundamental reason behind the fall is the company's reliance on the Chinese ceramic sector, which has recently seen a slowdown in the strong growth it experienced in the last few years. With the sector currently making up more than two thirds of Xaar's total revenues, it has left the manufacturer exposed to market fluctuations in the Asian country.

As a result, having initially suggested that 2014 would see a revenue boost of 15 percent on 2013's figures, Xaar has since revised this downward, and now expects results up to five or ten percent below its August prediction of 115m. Projected figures for 2015 are currently estimated to fall below 100m.

As well as the announced redundancies, the company is taking steps to reduce its operating expenditure by 15 percent in the coming months, as it looks to manage its costs while retaining its strategic objectives.

Following the announcement, Xaar chief executive Ian Dinwoodie stated:

"We are highly disappointed to have to make this level of cost reduction given the progress achieved over the last four years. Our exposure to the ceramic tile market in China, which delivered such strong growth over the last few years, is now driving a reduction in our sales.

"This change re-emphasises the need for Xaar's revenues over time to become more broadly spread across multiple markets and applications. Our competitive position remains strong through our established market leading products, recently announced offerings, and planned future launches.

"Development efforts on both our Bulk technology and our Thin Film technology provide an excellent basis for our future success as the digitalisation of industrial and commercial printing continues."