The Irish Times is in need of "root and branch" reform, representatives of the company's group of unions have been told by their financial advisers. They have also been told the company is significantly overstaffed.

The unions' advisers, Mr Greg Sparks, of accountancy firm Farrell Grant Sparks, and Mr Paul Sweeny, an economic adviser of Paul Sweeny & Associates, met union representatives yesterday and employees will be provided with an information sheet on their progress to date, later today.

A draft written report, due for completion before Christmas, is being prepared for the unions and management.

Specific details of yesterday's briefing were not available because the unions and their advisers agreed to a confidentiality clause to allow Mr Sparks and Mr Sweeny to examine the company's accounts.

Informed sources said last night that the report given to yesterday's meeting said the problems faced by The Irish Times were surmountable but only with radical changes in its method of operation at all levels.

There were also serious criticisms of what was referred to as the "corporate governance" of the company, including the Trust.

Staffing problems had arisen in large part because of poor organisational structures which meant "there were too many people in all the wrong places", according to one source. The company is seeking 250 redundancies from its 710 workforce as a central plank in its programme to prevent anticipated losses of more than £17 million (€21.6 million) next year.

The company had hoped to conclude talks with union representatives by Christmas and begin the first lay-offs by the end of January.

It now looks as if serious negotiations will not begin before the new year.

The unions involved in the talks include SIPTU, the National Union of Journalists (NUJ) and craft unions.

Meanwhile, the group of unions at Independent Newspapers (Ireland) have written to the company rejecting all of its proposed cutbacks.

These include reductions in holidays and an extension of the working week.