Independent Newspapers has announced a major restructuring of the management of its Irish newspaper operations with the appointment of Dr Tony O'Reilly's son, Gavin, as managing director of Independent Newspapers (Ireland).

Dr O'Reilly owns 28 per cent of Independent and the appointment of his son to head up the Irish operations is seen as cementing the O'Reilly influence within the group. Independent has also appointed Mr Gavin O'Reilly and his brother Cameron to an enlarged executive committee which will oversee the group's £90 million restructuring over the next five years. Mr Cameron O'Reilly is chief executive of APN News & Media, Independent's newspaper and radio offshoot in Australia.

Mr Gavin O'Reilly replaces Mr David Palmer as managing director of Independent's Irish operations. Mr Palmer becomes chairman of Independent Newspapers (Ireland) and has also been appointed project director for the group's new £70 million print plant on the outskirts of Dublin. This planned print plant, which will replace the near-obsolete machinery in Middle Abbey Street, is targeted to be up and running within two years.

Before joining Independent in 1994, Mr Palmer was chief executive of the Financial Times. As general manager and production director in the 1980s, he presided over the construction of the Financial Times's colour printing facilities on the East India Dock Road in London.

Staff sources said that the elevation of Mr Gavin O'Reilly to managing director was likely to be the forerunner to a more aggressive approach towards cost-cutting at Middle Abbey Street. Already, Independent has installed a new managing editor, Mr Michael Roche, whose brief includes editorial budgets and costs, and the subsequent appointment of Mr O'Reilly is seen in staff circles as reinforcing the move towards a lower cost base.

Mr O'Reilly has spoken bluntly about the need for changes in working practices at Middle Abbey Street and stated earlier this month: "The competition is bigger and better now than it has ever been and a little bit of reality at some stage has to enter the fray."

The competition he referred to includes the growth in recent years of The Irish Times and new titles like the Sunday Business Post and Ireland on Sunday as well as the increased penetration by British titles of the Irish market, particularly the Sunday Times.

Independent has already indicated that worldwide job cuts of about 10 per cent of its 13,500-strong workforce are likely as part of the restructuring. While the bulk of the job cuts are likely in New Zealand and South Africa, it is expected that Independent will look for cuts in manning in Ireland through a reduction in the numbers of casual and freelance staff. The four-day week enjoyed by journalists is also seen as a probable target, with Independent management likely to look forcefully for a minimum nine-day fortnight.