Lin said on Wednesday night that China Times daily will announce in mid July a package to cut down the number of pages as well as the number of employees to adjust to the change of media environment in Taiwan.

China Times publisher Chou Sheng-yuan sent a letter to every company employee that said the newspaper industry and advertising market have continued to shrink, while the costs of paper and raw materials have continued to rise, which "had not done any help to the group's overall income" and operation.

Lin said the group will transform the daily into an "elite newspaper" and focus more on special topic reports. The number of pages the newspaper will cut down, which had not yet been decided, will determine the number of personnel who will be laid off, Lin said.

In 1990, Taiwan has a total advertising revenue of NT$100 billion, but in 2006, the revenue was decreased to only NT$50 billion, and at the same time more media had been established, Lin said. The cruel reality had made China Times to change and differentiate itself from other media, he added.

However, Lin stressed that China Times will lay off its employees according to related laws and regulations, or even give more favorable treatment to those being laid off than stipulated in the law. The process will be fair and open, he added.