Observer: 'Death by a thousand cuts'

Interesting posting about the Observer on the Independent Minds site by Mark Hanson.
He describes himself as "a PR person by trade" but has been talking to contacts on the paper.
Here is some of what he found: "Huge anger at the Obs being seen to pay the price for bad strategic decisions taking by Rusbridger et al. Particularly the £60m sunk into bespoke printing presses that no one else is able to share."
"Hopes are resting on the shoulders of the main Observer champions on the Scott Trust board; Will Hutton columnist and former editor, and Larry Elliott . They are in a minority but are formidable."
"Significantly, the Guardian and Observer chapels merged the week before last and both voted to fight to protect the Observer"
"The main authority now rests with the 'Pod Heads' i.e. those people running the subject areas that cover all editions and multi-media. They are appointed by Rusbridger and they are empowered to make cuts, which often involves making cuts to Observer output and staff."
"The speculation about the Observer closing has been knocking around for a few weeks now but has only just hit the mainstream media. It could be this is a strategic leak so that when a less nuclear option is announced everyone feels relieved. It feels likely that the Observer will continue but be subject to death by a thousand cuts."