Management at the company, which runs the 72-year-old British edition of the magazine and its retail operation, said it had entered a "consultation period" with its staff.
The company declined to reveal how many jobs would be cut.
Thierry Bouzac, chief executive of Reader’s Digest, said: "Reader’s Digest has made good progress since its acquisition by Better Capital in April 2010 and further measures must be taken to ensure that it continues to have a bright future.
"Better Capital remains committed to the ongoing development of Reader’s Digest, as demonstrated by their recent injection of capital into the company".
Private equity firm Better Capital took control of Reader’s Digest UK for £13m in April last year, to fund the buy-out and future growth, after agreeing a licence arrangement with its US parent firm, Reader's Digest Association (RDA), plucking the UK firm out of administration.
The company went into administration on 17 February 2010, when its embattled parent firm said it was no longer able to support it following a crisis in its pension fund, which had a £125m deficit.
Managing director Chris Spratling, who had been the UK business's boss since 2008, remained at the company to lead its management team following the takeover.
At the time Reader’s Digest UK said it would continue to target its core over-50s reader base.
In a bid to increase its circulation by half over the next three years, to 600,000 copies, the title said in November that it would launch an "extensive programme" of consumer sampling, including distributing free copies at key points in London.
During that time, circulation of Reader's Digest continued to decline. According to the latest figures from the Audit Bureau of Circulations (ABC), the title had an average sale of 433,353 per issue between July and December last year, a year-on-year decline of 6.8%.
The company also went through a series of senior management changes. Spratling, who took over as chief executive after Better Capital took control, left the company in July last year.
He was replaced as chief executive by David Titmuss in November, only for him to leave the post after six months in May, "to pursue other interests" following a relaunch of the magazine.
Reader's Digest UK also launched a digital push in May to accelerate ecommerce sales and increase magazine subscriptions.
The publisher appointed twentysix, Digivate and I Spy to build its online presence and accelerate ecommerce revenues for the Reader's Digest’s books, CDs and DVDs retail arm.
Bouzac, a former chief executive of Reader's Digest parent company Vivat Direct, was appointed last month as the company’s third chief executive in a year.
According to reports earlier this month, Better Capital has committed a further £3m to fund continuing business and systems improvements at Reader’s Digest UK.
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