The latest cutbacks, which include senior editorial staff, accounts for about 10 per cent of the workforce in TVB's news and information services division. TVB's employees in Hong Kong now total 2,900, down from over 3,000 in March, it said.

``This is part of our efforts to streamline the structure of the company to ensure a more efficient use of resources,'' spokeswoman Winnie Ho said.

She said the company had cut seven staff in the news department, including senior executives, earlier this month.

Ho did not rule out further cutbacks in the news department, and said the group is undergoing a similar review of staff requirements to keep costs down in all departments.

TVB is scaling back its news production after an aggressive expansion plan to provide 24-hour news through its pay-TV arm, Galaxy Satellite Broadcasting, received lukewarm subscription, market watchers said.

Its news department not only produces contents for its two terrestrial channels in Hong Kong, but also sells services to Galaxy.

The layoffs on Friday followed the resignation of the department's three senior officials - controller of news and information services Loh Chan, news department assistant controller Cheung Chi-kong and news channel department manager Daphne Tse - early this month.

Because Galaxy has yet to be profitable, TVB may need to take on higher costs in the future, especially if it is unable to secure another investor. Intelsat pulled out in September.

Although TVB secured the rights to air in nine cities in Guangdong last month, analysts said it may not translate into revenue over the short term as that depends on the revenue-sharing model with local partners.

``The group ramped up its newsroom staff for its 24-hour news channel on the Galaxy pay-TV network, but it becomes difficult to justify that when it is only operating it for a few thousand subscribers,'' an investment bank analyst said who declined to be named. ``More cutbacks could be along the way,'' he said.

``Ever since the group's relocation to its new premises, operating costs spiralled out of control, and this is why they had to push their advertising rates up 10 per cent for next year.''

He addedthat falling viewer ratings for TVB's news programmes are also to blame for the latest job losses.