The World: New York - NYT plans to reduce page size to save $12m a year

The New York Times is planning to shrink the dimensions of its pages by 11 per cent in an attempt to counteract a steady rise in newsprint prices.

The move, which is set to take place in 2008, is expected to save the company $12 million per year. It will be the biggest adjustment to the paper's appearance in its 155-year history.

The newspaper's publisher, The New York Times Company, is also planning to save an additional $30 million per year by consolidating its two New York print sites. The merger is expected to lead to the loss of 250 production jobs.