Affinity Express will help produce and design display ads for the newspaper, according to the AP.

News & Observer Senior Vice President Al Autry told the AP that partnering with Affinity Express means “significant cost savings,” for The News & Observer, but would not give specific figures.

The Triangle Business Journal reported that the 16 positions will come from a pool of 26 advertising employees, and that the 16 workers losing their jobs can apply for one of the 10 remaining jobs. Autry told the Journal that the newspaper will work with employees who do not keep their current jobs to find positions elsewhere within the newspaper. Those who leave will be offered a severance package.

“There are monetary savings, but it truly is an investment for the future to meet the needs of readers and advertisers,” Autry told the Journal in an interview. “It's not just about saving money now. It's a strategic investment in the future.”

The outsourcing is expected to be complete by May 30.