The New York Times is to shrink both page size and workforce, in an attempt to deal with tough trading conditions.
250 jobs will go as part of the new redesign
Following the lead of many other US dailies, the iconic paper is planning to lop 3 inches (7.5cm) off the width of each double-page spread.
The paper's publisher, the New York Times Company, said it would also cut 250 jobs by 2008.
The announcement came as the firm reported profits up slightly to $61.3m (£33.5m) from $60.8m a year ago.
The company, which also publishes the Boston Globe, said that the changes would save it about $42m a year - although it would require investment of about $150m.
Papers across the US have switched to narrower pages in order to save money as newsprint costs have soared.
With advertising revenues under pressure, they say that the smaller shape is more attractive to their readers, who are directing more and more of their attention to online news sources.
"Our research has shown that readers, particularly young readers and commuters, prefer the smaller size," said the New York Times's chief executive, Janet Robinson.
As well national and regional newspapers, including The International Herald Tribune, the firm also owns About.com and nine local TV stations.
The internet businesses accounts for 7.7% of the firm's overall revenues, up from 5.8% in the second quarter of last year.