Sixty-five editorial staff at the Tin Tin Daily News will be laid off to cut costs. Deputy publisher Michael Lee Kin-chung said all employees except 30 executive and 30 marketing staff would be dismissed. The newspaper would contract out its reporting work to a new satellite company managed by the remaining senior staff. 'The laid off staff will be compensated according to the labour law,' Mr Lee said. He said it would be up to the new company to decide if it wanted to hire new staff or re-employ the dismissed employees. The new company will start operating by middle of the month and will be given about $680,000 a month to run the editorial sections. Executive chief editor Luk Wing-ho will be the company's chief supervisor. Mr Lee said re-employed staff would enjoy the same benefits. 'The quality and style of the paper will be maintained as the new company will still be managed by the same Tin Tin management group,' he said. The paper, formerly owned by Culturecom, was sold to Australian firm Viagold Capital on October 16. The paper says its daily circulation is about 100,000 copies. Mr Lee said: 'The dismissal is not a way to cut employees' salaries. In fact, the new formation allows staff to moonlight. This will not only simplify the company's administrative structure but greatly increase staff flexibility.' He said the paper's entertainment and supplement sections had undergone similar, successful restructurings two months ago.