FT editor resigns after dispute

The Financial Times has been struggling with falling UK circulation

The editor of the Financial Times, Andrew Gowers, has quit following a dispute with the newspaper's publisher.

Pearson said Mr Gowers was stepping down "because of strategic differences between himself and Pearson".

Mr Gowers, 48, has worked for the Financial Times since 1983 and was appointed editor in 2001.

However, the business paper has been struggling with falling circulation in the UK. Pearson said US managing editor Lionel Barber would replace Mr Gowers.

The company refused to comment on the dispute that led to Mr Gowers' departure, but Pearson's chief executive Majorie Scardino paid tribute to the former editor's career at the paper.

"As editor he led the integration of print and online media and extended our international reach and steered the FT through the most difficult markets in its history," said Ms Scardino.

Despite problems in the UK, the Financial Times has been expanding in the United States and continental Europe and expects to break even in 2005.