Belgian image technology group Agfa Gevaert plans to cut about one-fifth of its workforce as part of a second round of restructuring.

Agfa, which had already restructured once after being spun off from German chemical maker Bayer in 1999, said it would try and cut operational costs by 550m euros ($506m).

About 4,000 employees, including 750 at the head office outside Antwerp, would be layed-off worldwide over three years.

Chief Executive Ludo Verhoeven said the company needed to invest more in new technologies, such as digital imaging.

"We can only grow if we are profitable," he said.

More than 600,000 job cuts have been announced in the last few months as by major global corporations as they wrestle with slowing growth and plunging demand.

Agfa's stock gained 7.15% in Brussels on thin trade, lifting it off record lows reached on 11 September.

Outlook uncertain

The first "beneficial effects ... will occur already in 2003 and they will reach full impact as from 2004," Agfa-Gevaert said in a statement.

But chief executive Ludo Verhoeven later told reporters, "The uncertainties and the conditions of the economic outlook as well as the speed of transition makes it almost impossible to make a long-term forecast".

Agfa first announced plans for a second restructuring in June.

Last month, Agfa-Gevaert issued a profit warning after it said it would not meet its forecast of a 10% increase in net profit in 2001 and predicted a net decrease.

It also warned that 2001 operating profit would drop by 35% due to poor market conditions.