In a memo to staff today, editor Peter Barron said there would have to be "significant changes" to the way the papers operate.

Parent company Newsquest North East is also proposing to close district offices in Stockton, Redcar, Barnard Castle, Richmond and Thirsk, with staff there being relocated.

National Union of Journalists members at the paper are to hold a meeting on Monday to consider their response to the plans.

The memo stated: "Due to the rapidly deteriorating economic outlook, and the severe impact on advertising revenues across all our titles, Newsquest North-East has been asked to identify further cost savings to reflect our expected trading performance in 2009.

"In editorial, these amount to the loss of approximately 17 posts which will have to involve significant changes to the way the department operates.

"We very much regret to have to make this announcement, particularly now, but the timing has been dictated by the accelerating rate of the economic decline.

"We appreciate how hard staff are working in the most challenging times for the local newspaper industry, and how difficult it is going to be to implement these changes."

The news comes hard on the heels of a freeze on pay increases for the first quarter of 2009 which was issued to Newsquest North East staff yesterday.

The National Union of Journalists said its local chapel had been in negotiations with management over a 3pc pay increase due to come into force on 1 January.

But yesterday's memo to editorial staff at the Darlington centre said no pay awards were being made in the January review with April 2009 the next time any possible increases would occur.

The move mirrors a similar announcement from Trinity Mirror on Wednesday.

The Darlington centre produces The Northern Echo, The Darlington and Stockton Times, the Durham Times and the Advertiser Series.

There were increasing signs today that the ruling is being applied throughout the Newsquest group, with staff at both Newsquest Wiltshire and the group's Kendal centre revealing they have been sent a similarly-worded memo.

The memo from Newsquest North East managing director David Coates said: "In the light of further deterioration in trading conditions, we have decided that no pay rises are being made following the January 2009 review.

"An additional assessment of pay will take place on 1 April 2009 and any increase awarded at that time will apply from 1 April 2009.

NUJ Northern Regional Organiser Chris Morley today described the company's plans as a "double whammy" for staff.

"This is nothing less than vandalism on a great institution of the North - the hacking away of much of what makes the Northern Echo and associated weekly papers an important part of their communities," he said.

Darlington Father of Chapel Adam Murray added: "When circulation figures are plunging around the country, the Northern Echo has bucked the trend to some extent and this is the reward for its journalists' efforts.

"Closing the district offices is tantamount to waving goodbye to the communities that have been served by the paper for a century."