Daily Ireland, the tabloid newspaper launched just two months ago by the Andersonstown News group, is set to shed up to 12 jobs.
Daily Ireland hit the news stands in February
The group said it had lodged a complaint with the Equality Commission to challenge a "government ban" on advertisements in Daily Ireland.
The government said a new publication needed an audited circulation figure before it could advertise in it.
Daily Ireland said it would try to keep redundancies to a minimum.
Group managing director Mairtin O Muilleoir said: "The ban on advertising, which comes in the wake of a concerted unionist campaign against Daily Ireland, is contrary to the legal obligation on government to behave fairly in the provision of goods and services."
He added: "In face of the government ban, we are forced to restructure our operation.
"We're proud of what our group has done to create employment in West Belfast and intend to make every effort to keep job losses to a minimum."
When it was launched in February, the management of Daily Ireland said it would be cross-border and pro-nationalist.
About 60,000 copies of the paper were printed to coincide with the launch.
Its aim was to take sales off the Belfast-based Irish News and the Irish editions of the English tabloids, which sell well in nationalist areas.
It needed to sell 20,000 copies a day to break even and said it expected to pick up sales principally in Northern Ireland, Dublin and the border counties.