The New York Times is to axe around 100 editorial jobs, cutting back a newsroom operation that has swelled to 1,332 staff.

Bill Keller, the paper's executive editor, told staff yesterday that the title had its highest ever headcount, and that cuts would have to be made through contract buyouts, attrition and some lay-offs.

Despite some cutbacks at the title, editorial numbers have risen as the paper recruited heavily for its internet operation in recent years.

But growing financial concerns, including a 4.7% drop in advertising revenue for the New York Times Company last year, have fuelled the decision to cut staff. Shares in the company rose nearly 5% after the announcement.

The New York Times' own website reported that the paper's editorial budget is around $200m (£102m), of which about $3m is spent on coverage of Iraq. An extended US presidential campaign has also pushed editorial costs up.

"To meet our budget goals, we will have to do a little less, and every time we do less, we cede a bit of advantage," Keller told staff.

"Our challenge will be to set our priorities in such a way that we do less in the areas that damage our competitiveness least."

He said job cuts have been harder "because the low-hanging fruit is gone".

The New York Times is the latest of several leading US newspapers to announce job cuts. Los Angeles Times editor Jim O'Shea was fired in January for refusing to carry out editorial cuts, while parent company the Tribune newspaper group has announced that up to 150 jobs will go on the paper as part of 500 to be axed from the organisation nationwide.

Russ Stanton, who runs the LA Times website, was yesterday named as the paper's new editor, replacing O'Shea.

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