In the greater Triangle (Wake, Durham, Orange and Johnston counties in this survey by Scarborough Research), the number of adults who read the print N&O at least once a week increased by 6.4 percent in the last year.

That's more than the population growth of 3.9 percent.

The number of people who read newsobserver.com or triangle.com at least once a week grew by 12.5 percent.

Yet we also announced some painful news. About 70 people at The News and Observer Publishing Co. will be laid off. In the newsroom, 16 of our colleagues will lose their jobs.

Why is the company trimming its work force (to about 800 people) if readership is growing? Because revenue doesn't always follow readership. We've lost much of our print classified business to the Internet. And we've been hit by the downturn in the economy, as many businesses and households have.

Our two biggest costs are people and newsprint. When we need to cut expenses in a big way, we have to cut one, the other or both.

Our challenge is to keep the quality of the paper high as the quantity shrinks.

It can be done. About six months ago, we combined two Sunday features sections into the new Arts & Living section. The reaction from readers was strongly positive.

I don't like eliminating stand-alone sections. But now we have to do that again.

Beginning June 30, you will get two fewer pages on some days. Our Business and City&State sections will merge into one new section, Triangle&Co.

Also, we will go from four editions to two -- one for the Triangle and one for the rest of our circulation area. Our deadlines will be earlier; some games that end late will not make the final edition.

We will add some content, too. We will publish a page of business news on Mondays, and our Under the Dome political column will run on Sundays.

We also will enter into a closer relationship with The Charlotte Observer, our sister McClatchy paper. Our sports, political and research departments will merge.

This will enable us to avoid duplication and expand our reach.

When an N&O and an Observer reporter sit next to each other at a State-UNC basketball game, they won't each write a game story. Instead, one will write a game story, and one will write a sidebar or column. The two papers can run each piece.

By working together, we will break more news and generate more enterprise reporting.

We've worked for several years to meet your needs in print and online. Our readership data show our reach is greater than ever.

Stick with us. We're passing through some hard times, but the demand for news and information has never been higher.

Thanks for reading The N&O.