Ninety five members of staff have been retained by the administrators to assist them with the operation of limited activity across the two sites while they explore any possibility of a sale of the sites and assets.
"Unfortunately, and following on from the severe challenges posed by the pandemic, the significant economic headwinds which have been impacting industrial manufacturing businesses up and down the country, including skyrocketing energy costs and spiralling input prices, have proved to be overwhelming for the group.
"The management team has asked that we pass on their sincere thanks to all employees, customers and suppliers, plus Scottish Enterprise, for their strong support during these very difficult times, and they would like to express their deep regret that there was unfortunately no other option available for this historic group."
"This comes as a huge blow to our members who stood by the mill through the last administration and welcomed the management buyout, which gave them so much hope for the future.
"Stoneywood Mill has been a very successful business in our city for more than 250 years and everything must be done to safeguard jobs and protect its future," he said.
Richard Thomson, the SNP MP for Gordon, said together with Jackie Dunbar, the MSP for Aberdeen Donside, he would seek to hold an urgent meeting with the administrators to see what else could be done for those who had lost their jobs, and "to discuss the options for preserving papermaking on the site with the aim of retaining as many jobs as possible."