All print media is suffering because many of their readers now have digital reading habits.
The Governments austerity, which most economists oppose, is entirely different from a newspaper making less revenue, and having to live within its means.
The deficit was largely incurred by the country having to loan money to save banks that were "too big to be allowed to fail". The Government's response is to cut spending on services for the elderly and poor.
The Guardian is just like any other private business. If it is not making any money, it is not going to survive.
The Daily and Sunday Telegraph are also about to be sold. And James Murdoch is back running ruperts empire on a daily basis, so expect similar job culls at the Times and Sun.