Postmedia to close 15 papers and make employee cuts
Extensive employee cuts have been announced by Postmedia along with the closing of 15 weekly papers.
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Extensive employee cuts have been announced by Postmedia along with the closing of 15 weekly papers.
Extensive employee cuts have been announced by Postmedia along with the closing of 15 weekly papers around Manitoba and Ontario’s Windsor-Essex area, according to CBC News.
Andrew MacLeod, the president and CEO of Postmedia said the recent economic situation in Canada has hit the company hard.
"The impact to advertising revenues, both print and digital has been very significant," MacLeod wrote.
"I believe that Postmedia has taken every possible short-term step to stabilize our business against these unprecedented tidal forces. And we are fully utilizing every government subsidy program announced. While we are very grateful for these programs, no subsidy can offset the huge declines in revenues our industry is experiencing."
Macleod said that necessary steps will include temporary salary cuts as well as temporary and permanent layoffs.
The 15 community newspapers will be permanently closed by May 4 which will cause about 30 permanent layoffs.
The Ontario publications will include Lakeshore News, LaSalle Post, Kingsville Reporter, Tecumseh Shoreline Week, Paris Star, Tilbury Times and the Napanee Guide.
Publications affected in Manitoba will be Altona Red River Valley Echo, Interlake Spectator (Gimli), Morden Times, the Carman Valley Leader, Selkirk Journal, Winkler Times, the Stonewall Argus & Teulon Times, and The Prairie Farmer.
"The affected publications are not financially sustainable and these closures will be permanent," MacLeod wrote.
There will be another 50 employees temporarily laid off in sales for three months at the minimum. MacLeod noted that the positions would be reevaluated after three months based on revenue trends.
"Temporary layoffs mean that these employees will have access to the Canada Emergency Response Benefit and will continue to receive company benefits for the duration of the temporary layoff," he wrote.
A temporary salary reduction will be given to employees that have a salary of approximately $60,000 on May 4. This does not include commissioned advertising sales representatives.
Specific position reductions include:
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