The company said its staff needs to be trimmed as a result of declining advertising revenue. The newspaper did not reveal how many of the Observer's less than 1,200 employees will receive a buyout offer.

"We regret that we must say goodbye to some trusted and valued colleagues," publisher Ann Caulkins said in a story posted on the newspaper's Web site. "But for the long-term future of the company, it is important that we respond to current market conditions."

Observer editor Rick Thames said during a meeting with newsroom employees that the newspaper's regional and neighborhood sections will be restructured, requiring fewer employees.

He stressed that the buyouts are voluntary. "Every buyout offer is a proposal, not a done deal," he said.

In a note to employees, Caulkins said The Observer also plans to eliminate 13 part-time telemarketing positions. She said those workers will be offered severance packages. The buyout program is to be completed by May 30.

Last week, The News & Observer of Raleigh said it was offering voluntary buyout packages to some employees. Both newspapers are published by California-based McClatchy. Employee buyouts have been offered at other McClatchy papers, including The Modesto (Calif.) Bee, The Sacramento (Calif.) Bee and the Miami Herald.

The Herald, The State in Columbia, The Sun News in Myrtle Beach, The Island Packet in Hilton Head and the Beaufort Gazette are McClatchy's daily newspapers in South Carolina.