Regional publisher Northcliffe Media saw a £10m fall in profits during the year to 2 October despite axeing a total of 602 staff.
Results published today by its parent company DMGT show Northcliffe reduced its costs by £15m during its last financial year.
But with revenues falling £25m from £261m in 2009-10 to £236m this year, profits were down £10m from £27m to £17m.
The reduction in staff numbers of 602 – with more expected in 2012 – constituted almost a fifth of the entire workforce.
A statement accompanying the results said: “Northcliffe continued its restructuring and process innovation and delivered year-on-year cost savings of £15m.
“Total headcount reduced by a further 19pc, or 602 people. Greater efficiency has been delivered across all departments.
“Northcliffe’s titles continued to be affected by weak advertising markets, with total revenues down by 10pc to £236m.
“Operating profits of £17m and an operating margin of 7pc were in line with our expectations.”
Advertising revenues were down 10pc year-on-year, with the biggest falls being seen in recruitment where revenues fell 29pc.
Newspaper sales revenues fell by 6pc or £4m.
The statement also outlined some of the management changes that have taken place in Northcliffe since last year, with the appointment of Steve Auckland as managing director and the dismantling of the group’s regional editorial structure.
The changes also included separating Northcliffe Digital into a standalone enterprise under Roland Bryan to speed the pace of digital development.
Looking ahead to 2012, the statement said the underlying revenue trends were expected to continue alongside continued cost-reduction initiatives.
“The ambition for Northcliffe is to be operating a simplified portfolio of titles with a customer focused structure and a modern culture,” it said.