Update 2:38 p.m.: Despite earlier reports that about half of it journalists would be cut, the dust has settled and the Times-Picayune newspaper has said it has laid off about one-third of its staff--about 201 of its employees.

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When we heard that the Pulitzer-winning New Orleans Times-Picayune would be cutting back to three days per week, we knew that cuts were on the way. Today, we learn that half one third of its staff will be losing their jobs, and they're in meeting rights now finding out who's getting the axe. "The newspaper says employees are being told Tuesday whether they will have a job with NOLA Media Group or be offered a severance package to leave the 175-year-old newspaper," reports The Associated PressThe Gambit's Kevin Allman (via Jim Romenesko) reports that the severance packages cap out at one year, and fired employees will accrue 1.5 weeks of pay for every year of service. "At least three very familiar newsroom names, including award winners, have said they intend to take severance and/or don't expect to be invited to join NOLA Media Group," writes Allman. Romenesko is also reporting that half of the news staff is being let go.