Thelondonpaper recorded a pre-tax loss of £12.9m in the year to 29 June 2008 on turnover of £14.1m.
The company has begun a 30-day consultation with staff at NI Free Newspapers, the subsidiary that publishes thelondonpaper. The company plans to continue to publish the title for the next month.
The paper was launched in September 2006 and competes with Associated Newspaper's London Lite.
News International has been streamlining its operations over the past 18 months, selling off News Magazines, PropertyFinder and CentreCore, to focus on its core titles.
News International also publishes The Times, The Sun and News of the World.
More details to follow.