The editorial cuts will come as a blow to new Express editor Peter Hill, named as the replacement for Chris Williams who departed for the Daily Mail on Thursday.
Hill switches from editing Desmond's Daily Star tabloid, which has seen circulation soar during the five years that he has led the title. Desmond is hoping that Hill can repeat the same trick on the mid-market tabloid the Daily Express.
According to a report in The Observer, senior insiders say the owner has lopped 10% off next year's editorial budget and will instead use the cash to pay for promotions and giveaways in an effort to boost circulation.
It is understood that Hill will be forced to make a number of job cuts as part of the £5m cut to editorial budgets, although Desmond has assured the National Union of Journalists chapel that there are currently no plans to cut jobs.
The cuts to the editorial budget were thought to be one of the reasons that Williams quit as Daily Express editor. Williams is moving to Glasgow to edit the Scottish Daily Mail.
Hill's appointment has already resulted in at least one casualty as Daily Express deputy editor Nicola Briggs is replaced by Hill's number two on the Daily Star, Hugh Whittow.
Desmond has yet to name a new editor of the Daily Star, but features executive Dawn Neesom is being tipped for the job.
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