News International, the publisher of The Sun, News of the World, The Times and Sunday Times, is poised to make cuts to reduce its losses according to an internal email sent to staff by its chief executive Rebekah Brooks.
"We have an unacceptably low profit margin," Ms Brooks told staff, with News International having reported a £73.3m loss in 2010, in contrast to a £31.7m profit the year before.
"Our costs are just too high and our margin too low. There will be some tough decisions ahead. Costs will need to be cut and savings made in overheads."
The company has refused to rule out redundancies.