
In a statement, publisher Midlands News Association said it is carrying out a major restructuring programme to help the company deal with poor trading competitions.
Certain parts of the production, finance and classified advertising departments will be merged and there may be structural changes in the editorial, advertising and circulation divisions. Overall staffing levels will be reduced by 10% over the next six months.
A spokesman for Midland News Association said they were unable to comment on the effect of the restructure on individual departments, but that some "would be hit worse than others", though both papers will retain separate identities with separate editors and journalists.
The Midland News Association said it hoped voluntary redundancies will produce the staff savings, but admitted some compulsory redundancies may be necessary.
Douglas Graham, chairman of the Midland News Association, said the changes will make the company a "fully integrated media business" and once the economic situation improves the company will be "well placed to take advantage of new opportunities".
Express & Star managing director, Alan Harris, will become managing director of the merged company. Colin Spicer, managing director of the Shropshire Star, will remain managing director of the Shropshire paper, but will now report into Harris.
Harris said the company was faced with the difficulty of how to keep its newspapers local and made cost savings because the company could no long rely on growing ad revenue.
Internal meetings over the coming weeks will determine which departments will be hit most severely.