Sly Bailey, the chief executive of Trinity Mirror, told staff that there would be no bonuses paid out this year because targets had not been met and that a company-wide pay freeze would be put in place.

In a bid to boost morale, however, Ms Bailey said that all employees would be eligible for a bonus of up to £1,000 next year.

A Trinity Mirror spokesman said: Our priority is to safeguard the future of the Group and we are taking a range of actions to reduce costs, including the announcement of almost 1200 job losses and the closure of 44 titles.”

“We are now taking additional actions to protect the business including no bonuses to be paid relating to 2008 and a company wide pay freeze. However, in recognition of the hard work and commitment required we have introduced a special 2009 incentive scheme in which all employees will participate."

The owner of the Daily Mirror, under pressure from a sharp decline in advertising revenues and an expensive debt burden, has said it is to cut its costs by another £20 million next year.

Last week the company signalled that jobs would have to go, as the cost-reduction plan was introduced "everywhere and anywhere". Trinity unveiled the additional cost-cutting programme as it said worsening conditions in the advertising market had forced down revenues by 11.4 per cent during the 17 weeks to October 26. Advertising revenues fell 19.4 per cent over the period, while circulation dropped 5 per cent.

Trinity has closed 17 titles since the end of June, including the Derby Trader and Formby Times. A total of 28 titles have been shut down since the beginning of the year.

UK media are under huge pressure amid few signs that the downturn in the advertising industry is likely to recover in the near-term.

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