Guardian Media Group, owners of The Guardian and Observer newspapers in the UK has warned staff to expect further heavy losses this financial year with the group expected to burn up to £90m (€105m) of its remaining cash resources during the period.

It is down £60m (€70m) so far this year and expected to go through a further £30m (€35m) between now and April.

The newspaper was the first to publish Edward Snowden's NSA leaks

After tax and one-off charges, the group recorded losses of £200m (€234m) in its last financial year and continues to eat into the Scott Charitable Trust, the huge reserve that has sustained its operations over the years.

The company announced plans to cut 250 jobs in March of last year. It has also scaled-back its international expansion plans.

Management believe they can turn things around over the next two years and ongoing restructuring plans include reducing the size of the newspaper and outsourcing printing to rival publisher, Rupert Murdoch’s News UK, according to The Telegraph.

The paper has not ruled out the possibility of a paywall - it currently offers all of its online content for free but calls on users to offer donations to the newspaper.

The publisher has struggled to cover costs following The Guardian's aggressive expansion under its previous editor, Alan Rusbridger.