Job cuts are expected to be announced later this week at The Daily Telegraph and Sunday Telegraph, which becomes the latest national newspaper group to respond to the deteriorating economy by saving money.

Just over 50 redundancies are likely to be announced at the titles owned by Sir David and Sir Frederick Barclay, across a group that employs 1050 staff. A little over half of these are journalists on one of the two newspapers.

Rumours circulated yesterday that the level of cuts could be as great as 10 per cent, but it is believed that the savings aimed for will be lower than that. However voluntary redundancies are not expected to be sought.

The quality newspaper market is down by around 10 per cent since the summer, in what is traditionally the most important season for advertising. Last week The Independent, fourth in the market, announced 90 job cuts, out of a workforce of 425.

Last year the two newspapers made £11.1 million profit before tax, after exceptional charges stemming from redudancies of £23.8 million. That followed a loss in 2006 of £8.8 million - again after redundancy expenses amounting to £25 million in that year.

Sir David and Sir Frederick Barclay bought The Daily Telegraph and the Sunday Telegraph, for £667 million in the summer of 2004, part financing the cost with loans that totalled £259 million at the end of last year. Since the acquisition, they have injected a further £25 million in equity, and lent the business another £25 million on an interest free basis.

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