The News & Observer is transferring newsroom production work to a new center in Charlotte.

Beginning in August, the new center will perform copy editing and page design for The N&O and its community newspapers, as well as The Charlotte Observer and The Herald of Rock Hill, S.C., which also are owned by The McClatchy Co.

In all, about 25 N&O positions are being moved to the center, which will be housed in the Observer's building in Charlotte. The papers' computer servers and much of the technical support staff are in Charlotte.

All N&O copy editors and designers will have the opportunity to relocate to the new center.

"Given the new economic realities of our industry, we must find more efficient ways to deliver the very best products to our readers and advertisers, and we are confident the new center will be an important part of our future," said Orage Quarles III, publisher of The N&O.

The News & Observer will eliminate about 20 jobs in the latest cost-cutting effort by the Raleigh-based media company.

The staff reductions announced today will affect most areas of the company, including the newsroom. Some employees will have the opportunity to accept voluntary severance packages, but a few positions will be eliminated through layoffs.  

The newspaper publisher continues to see declines in print advertising revenue, mirroring similar trends nationwide. Online ad revenue is increasing, but is still a smaller part of the total.

"Although our declines are not as steep as they have been in previous years, revenue trends remain negative year-over-year," publisher Orage Quarles III wrote in a memo to employees this morning. "As a result, we must continue to look for ways to offset this trend by managing expenses.

"We understand how difficult this message is to receive given other reduction programs we have done over the last few years," he wrote. "However, we are working hard to implement new products and improve our revenue performance to help us navigate through these difficult times."

The News & Observer Publishing Co. plans to eliminate about 20 positions, the latest cuts as the media company rides out a sharp decline in revenue.

The Raleigh-based parent of the N&O has laid off hundreds of workers and trimmed its size during the past two years. The moves mirror similar steps at most other media companies, including local broadcasters, which were hit by the recession and weak advertising.

The N&O continues to see "softness" in its three major sources of classified ad revenue: housing, automobiles and employment, said publisher Orage Quarles III, who oversees the flagship newspaper, newsobserver.com and community papers including The Cary News and The Chapel Hill News.

"Probably six months out we'll start seeing a rebound," he said. "Our losses have definitely slowed, but we still have losses. I'm just trying to be prudent as we head into a new year."