A weekly regional paper launched in the North West three months ago is cutting staff to help save £250,000.
Supplements on lifestyle and regeneration have been dropped
Sales of the Manchester-based North West Enquirer, which covers Cumbria, Lancashire, Merseyside, Isle of Man and Greater Manchester have been falling.
It aimed to sell at least 15,000 copies a week, but now circulation has fallen to about 10,000.
The paper is cutting the number of journalists and increasing sales staff to help increase revenue.
Supplements on lifestyle and regeneration have also been dropped to cut costs.
Managers said they are hoping for consistent profits by the autumn.
Bob Waterhouse, editor and investor in the paper, said the cuts were due to "getting established in the market place".
He added: "There have been changes on the commercial side, but I was, as editor and investor, asked to reduce overheads on the editorial side and that is, very reluctantly, what I have had to do."
It is believed that two senior members of editorial staff have lost their jobs out of a total of 15 employed on the newspaper, and more posts may go.
Mr Waterhouse said bucking the trend of declining sales in newspapers was "a challenge", but said it was attainable.