Guardian says rumours it is to close down print operations 'categorically untrue'

The newspaper currently has operating losses of £58.6m a year

Around 250 jobs in the UK are expected to go as part of the drive to curb losses

The Guardian has denied rumours it is about to close its print operations in a bid to curb operating losses of £58.6m a year.

The rumours were sparked when Spectator journalist Toby Young claimed the print arm of the newspaper was due to clsoe.

Howver, the paper's director of publishing Richard Furness said the rumour was "massively off the mark".

A spokeswoman for the newspaper told The Independent: "These rumours are categorically untrue.

"The latest ABC figures, which were released yesterday, saw an increase in print sales for both the Guardian and The Observer - clearly demonstrating a sustained demand for our quality print products.

"We will continue to produce world class journalism across both digital and print."

The newspaper is on a redundancy drive as it attempts to reign in its operating costs after they ballooned in recent years.

In March, the newspaper's management announced a plan to reduce their UK workforce by 18 per cent over the next three years in a bid to balance their books by 2019.

Around 100 jobs from the 725-strong editorial workforce look likely to be lost along with 150 staff from commercial departments.

In an email to staff, editor-in-chief Katharine Viner and chief executive David Pemsel said the "volatile media environment" had led to an "urgent need for radical action".

It comes after it's former editor-in-chief, Alan Rusbridger, was blocked from becoming the chairman of the Scott Trust - which owns the newspaper's parent company Guardian News & Media - last week after facing opposition from Ms Viner and Mr Pemsel.