If this is true, I can't say I am surprised and there are likely to be more MSM casualties as blogs and other online media continue to grow in usage and readers. Closures of papers like this are starting to look inevitable, not least after Murdoch's recent shocking financial results.
There are rumours that the Independent is struggling and there were also reports that The Observer might have to fold in the near future.
I wonder which title will be next to fall.
UPDATE: As I hit post, the news was confirmed. There is a 30 day consultations and 60 staff will be affected.