Just 18 months after it was launched, News Corp's digital newspaper The Daily is sacking 29 per cent of its staff and overhauling its format.
The Daily was Rupert Murdoch's attempt to reinvent daily news for the tablet age.
It was initially designed to work on Apple's iPad tablet but now also appears on rival devices using the Android operating system.
The Daily reportedly has around 100,000 paying subscribers, but the firm keeps the exact number close to its chest.
Launching the paper, Mr Murdoch said it would need to recruit around 500,000 readers a week to break even.
The revamp, including changes to the online paper's sports and opinion sections, comes at a time when the daily news business in general and News Corps' international stable of newspapers in particular have been in turmoil.
Mr Murdoch is reorganising his empire following a telephone hacking scandal in Britain that saw his Sunday tabloid the News of the World closed down and several former executives arrested.
The Australian-born mogul plans to split the successful entertainment side of his group from the publishing arm.
Mr Murdoch has resigned from the boards of his remaining British print titles but stayed on as News Corp's chairman.