Pearson PLC (PSO) said Tuesday it will cut 100 jobs in the U.K. division of its Penguin book publishing business, part of a reorganization designed to cut costs and address the rise of digital media.

Publishers of reference books such as health and travel guides have had to compete with Internet sites that offer similar information either for free or at lower cost.

Some of the Penguin job cuts will come from Dorling Kindersley, which publishes illustrated reference books, and its Rough Guide travel publication business, where the group will move some of its publishing to an existing center in New Delhi. The job losses amount to around 10% of Penguin and Dorling Kindersley's staff in the U.K.

Other job cuts will be spread across Penguin Group roles and back-office functions.

Penguin's restructuring is designed to cut costs and prepare the group to face the fundamental structural change in the industry and includes the appointment of Anna Rafferty as digital managing director to reflect an increased emphasis on digital activities.

The company has already begun the move to offering digital content with the launch of Penguin 2.0 in the U.S. late last year that allows readers to access content on mobile phones, with social networking and community functionality following close behind.

"Digital technology is altering the shape of book publishing, creating tremendous new opportunities but also putting unprecedented pressure on our costs and our traditional ways of working," said Penguin Group chairman and chief executive John Makinson.

Digital or eBook readers such as Amazon.com Inc.'s (AMZN) Kindle and Sony Corp.'s (6758.TO) Digital Reader are also changing the way consumers read and purchase books, and are cost saving opportunities for book publishers who still charge for the books but no longer need to print them.

Pearson is an international media and education company. Its main divisions are Penguin Group, Pearson Education and Financial Times Group.

At 1523 GMT, Person shares were up 2p at 588p.

-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293; kathy.sandler@dowjones.com