Media group Thomas Crosbie Holdings Limited told the Irish Examiner and the Evening Echo newspapers' staff that they would have to accept a 10 percent pay cut due to the increasing financial problems of the company, The Irish Times reported Saturday.

During a meeting held on Saturday, the management also revealed a €20 million deficit in the company's defined-benefit pension fund derived from poor investment performance, according to RTÉ News. As a result, the dailies' staff might face pension cuts of at least 50 percent, the Irish Independent reported.

"The company believes that pay cuts are now essential to protect the future of the business and employment within the business," the said group in a statement remembering that it had tried to avoid the salary cuts "for as long as possible," BreakingNews.ie quoted.

Union representatives said they would meet on Wednesday with company's management to further discuss the cuts.

Both newspapers witnessed circulation declines in the first half of 2010. According to the latest Audit Bureau of Circulations report, the Irish Examiner circulation was down by 7.3 percent while the Evening Echo lost 7.9 percent.