The Telegraph Media Group is to cut 80 jobs as it merges the Daily and Sunday Telegraph newspapers into a seven-day operation, Sky sources have confirmed.
Some 14% of editorial jobs will go from the staff base of 550 posts.
However the restructure of the two newspapers will see the creation of 50 digital content roles within six months.
Chief executive Murdoch MacLennan sent a letter to staff on Tuesday morning revealing details of the new structure.
He said: "We must move now to complete our transition to a digital business.
"To do that we need to invest significantly and I am today announcing an £8m investment in our digital future, our number one priority."
According to sources, Mr MacLennan also told workers: "We are also going to have to restructure our editorial operation to produce a root and branch change in the way we function.
"To this end, it will be merged into one unified operation, serving digital and print products on a 24/7 basis."
The newspaper industry has struggled to maintain print circulation as news consumers increasingly seek online product.
Advertising rates have also plummeted in recent months, increasing pressure on overhead cost-cutting at the two newspapers.
A source at the Telegraph Group told Sky News: "There is going to be a major change on the editorial floor because of the pressure on print.
"It is still uncertain who exactly is going to be in the firing line."
Sky sources have revealed that the decision on specific job cuts will be made news week.
:: The Daily Telegraph has been published in print form since 1855 and the Sunday stablemate was established in 1961.
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