Postmedia cutting jobs, Sunday editions
Calgary, Edmonton, Ottawa, Montreal papers affected
CBC News
Posted: May 28, 2012 4:17 PM ET
Last Updated: May 29, 2012 8:14 AM ET
Some of Postmedia's newspapers are displayed. The company will soon stop producing Sunday newspapers in three of its largest publications. (Adrian Wyld/Canadian Press)
Related
Postmedia announced a slew of jobs cuts Monday and plans to stop publishing Sunday editions in three of the chain's largest newspapers, the Edmonton Journal, the Calgary Herald and the Ottawa Citizen.
"Three of our newspapers [in] Calgary, Edmonton and Ottawa will stop producing a Sunday edition," CEO Paul Godfrey said in a memo to staff obtained by CBC News.
The National Post will also stop publishing a print Monday edition through the summer, something it has done in each of the past three years. But the company says it will "look closely at its publication schedule going forward" — something it has not suggested in the past.
There will also be job cuts across the chain, but no details were given in Godfrey's memo. "Some roles across our operations will be eliminated," Godfrey told employees.
Postmedia employees in at least one newsroom were told layoffs would not start until the fall.
The company plans to streamline costs by centralizing a lot of design and pagination work to a Postmedia venture in Hamilton, Ont.
In a memo to staff, Montreal Gazette editor-in-chief and publisher Alan Allnutt said more than 20 editorial positions would be cut in the next few months.
"All roles, from managers on down, will be redefined with a digital focus," said Allnutt, who added voluntary buyouts will be offered in most departments.
Edmonton Journal editor-in-chief Lucinda Chodan says there will be "staffing reductions" and the company is offering voluntary buyouts to certain employees.
'Some roles across our operations will be eliminated'—Postmedia CEO Paul Godfrey
A note to staff from a senior editor at the Ottawa Citizen says roughly 20 jobs will be lost. The note also confirms that the paper will be launching a metered model for access to the paper's website and mobile platform in mid-June.
"This move will result in lost positions, however the exact number and timing of the transition has yet to be determined," National Post publisher Doug Kelly told Post staff members in a memo.
CWA Canada, the union that represents journalists at Postmedia newspapers , said in a statement that cutting jobs is the wrong strategy and will only make things worse in the long run.
"We understand that Postmedia is facing financial challenges, but we believe the company can only turn things around by investing in its product rather than by cutting jobs," CWA Canada Director Martin O'Hanlon said. "If we've learned anything over the last few years, it's that cutting jobs only hurts quality, and that does nothing to attract readers or generate revenue."
Chris Dornan, associate professor of journalism at Carleton University told CBC News, that Monday's announcement is a "significant move."
“Clearly now what’s happening is that the costs associated with actually publishing a paper-and-ink edition of a newspaper is becoming so burdensome that the newspaper industry is trying to rid itself of costs.
Industry in transition
The problem for newspapers, said Dornan, is that the industry is at a transition. It’s cheaper to publish digital editions, but much of the marketplace still isn’t willing to make that move.
Many readers aren’t, and advertisers are also hesitating, he said.
“Advertisers are not willing to pay the same advertising rates for electronic distribution as they are for the physical artifact. The industry, Dornan said, “is saddled with two simultaneous expenses. Not only do they have to produce a paper-and-ink version, their also have to produce a digital one.”
Changes will begin next month when Edmonton stops publication of its Sunday paper on June 24, while Ottawa is scheduled to follow in mid-July and Calgary at an undecided date.
The company said earlier this month it was cancelling an in-house wire service, Postmedia News, resulting in the loss of some two dozen jobs, and last month it announced it would charge for content on the Ottawa Citizen, Vancouver Sun and Vancouver Province websites.
Its rival, the Globe and Mail announced earlier this month plans for a similar paywall and asked staff to take unpaid leaves this summer in a similar cost-cutting move.
In its most recent quarter, Toronto-based PostMedia reined in its losses, while a drop in business from national advertisers dragged revenues lower.
Its net loss was $11.1 million in the three months ended Feb. 29.
Postmedia was founded just over two years ago out of the restructured newspaper assets of the former Canwest publishing chain.
Postmedia’s other newspapers include the Vancouver Province, the Vancouver Sun, the Regina Leader-Post, the Saskatoon StarPhoenix and the Windsor Star, as well as the Canada.com online news and information portal.
The cutbacks follow similar moves by several U.S. newspapers, the latest being the Pulitzer-winning New Orleans Times-Picayune, which last week said it would cut publication back to three days a week from seven and cut staff.
With files from The Canadian PressShare Tools
Top News Headlines
- Senator Pamela Wallin leaves Conservative caucus
- Senator Pamela Wallin says she is recusing herself from the Conservative caucus while her travel expense claims are under scrutiny. Wallin's departure comes one day after Senator Mike Duffy left the Tory caucus amid controversy over his expense claims.
more »
- Toronto Mayor Rob Ford denies crack cocaine allegations
- Toronto Mayor Rob Ford says allegations he was caught on tape smoking crack are "ridiculous," following reports that someone had been trying to sell a purported recording of such an event to U.S. and Canadian media outlets. more »
- Sailor fighting cancer says AWOL charges dropped
- All charges against a Nova Scotia woman in the Royal Canadian Navy who is fighting cancer, and who was charged with being absent without leave and facing a court martial have been dropped, the woman and her lawyer say. more »
- Should genetic testing for cancer be available to all Canadians?
- The revelation that Hollywood celebrity Angelina Jolie had a double mastectomy as a preventative measure against cancer stoked heated discussion this past week, but one prominent cancer researcher says it demonstrates the need to make genetic testing available to all Canadians. more »
- 12 young leaders changing Canada in this week's Generation Why
- If the number of young entrepreneurs and innovators in Canada is any indication, the generation that came of age alongside the modern web is ready to rethink everything. Meet 12 young people our readers nominated as the most dedicated, impressive, creative and intelligent Canadians under the age of 30 they know. more »
Must Watch
Latest Business Headlines
- 1 year later, Facebook stock remains below IPO price
- A year after Facebook's high profile IPO, investors are still skeptical about its prospects and the stock price is wallowing. more »
- IRS's integrity at stake in scandal over screening of conservative groups
- Unloved in the best of times, the Internal Revenue Service will have to scramble to convince U.S. lawmakers and the public that its intentions were pure, not partisan, when it subjected groups affiliated with the Tea Party movement and other conservative causes to special scrutiny. more »
- GM shares close above IPO price for 1st time in 2 years
- Shares of General Motors reached an important milestone on Friday, closing above their initial public offering price of $33 US for the first time in more than two years. The day wasn't bad for GM's rivals either, with Ford shares closing above $15 for the first time since May 2011 and Toyota, Honda and Nissan all hitting 52-week intraday highs. more »
- AECL to cost $236M more than expected this year
- A new report from the parliamentary budget officer shows Atomic Energy of Canada Ltd. continues to be a drain on the public purse and will cost an additional $236 million this year. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12613.05 | 105.45 |
| DOW | 15354.40 | 121.18 |
| NASDAQ | 3498.97 | 33.73 |
| SP 500 | 1667.47 | 17.00 |
| TSX-VENTURE | 934.68 | 1.82 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Senator Pamela Wallin leaves Conservative caucus
- Toronto Mayor Rob Ford denies crack cocaine allegations
- Tim Bosma public memorial Wednesday in Hamilton, Ont.
- Dennis Oland named as prime suspect in father's slaying
- Public raising funds to buy alleged Rob Ford crack video
- Sailor fighting cancer says AWOL charges dropped
- Milwaukee bar wins overturn of bra ban
- 2 earthquakes felt in Ontario and Quebec
- Lawyer says RCMP refuses to mediate harassment suit

