Catalyst Paper said Tuesday 100 staff members would soon be out of work due to ongoing weakness in the forestry sector and curtailments at two British Columbia mills.

The paper producer, based in Richmond, B.C., said it would cut 55 salaried staff positions at the Elk Falls mill and Crofton pulp mill, both of which were idled indefinitely in February. Catalyst said the remaining cuts would be made primarily at company offices in Richmond and Nanaimo.

The company said the cuts were prompted by the global economic downturn, which has prompted Catalyst to idle about 40 per cent of its production capacity.

The cuts, which are set to be completed by June 8, are expected to save the company about $350,000 a month plus $4 million in annualized savings.

"This is an exceptionally difficult time in the industry and current market conditions cannot support the current staffing level," Catalyst chief executive Richard Garneau said in a statement.

"The steps we are taking today will continue to bring costs down as we strive to put in place the lean manufacturing structure necessary for what could be a smaller paper market going forward."

Catalyst is the largest producer of specialty printing papers and newsprint in Western North America. The company also produces market kraft pulp and owns Western Canada's largest paper recycling facility.