Business

Globe and Mail offers voluntary buyouts in effort to save $10M annually

A Globe spokeswoman says employees have until May 29 to enrol in the voluntary program and the company will decide in July if involuntary layoffs are necessary.

Employees have until May 29 to enrol in program

The Globe and Mail has offered its employees a voluntary severance program in an effort to cut costs. Globe employees were told Wednesday that the newspaper is looking to cut $10 million annually from its operating budget. (Adrian Wyld/The Canadian Press)

The Globe and Mail has offered its employees a voluntary severance program in an effort to cut costs.

Globe employees were told Wednesday that the newspaper is looking to cut $10 million annually from its operating budget.

A Globe spokeswoman says employees have until May 29 to enrol in the voluntary program and the company will decide in July if involuntary layoffs are necessary.

The union that represents media workers at the Globe called it a "sad day" in a bulletin to staff on Wednesday.

"Less than a week after proudly celebrating its award-winning journalism at the National Newspaper Awards — quality journalism that is only made possible because of the talent and dedication of its reporters, editors, visual journalists, ad revenue staff and others — the employer has decided to drastically cut staff," wrote the union's unit chair Mason Wright.

At the industry awards ceremony held in Toronto last week, the Globe won 10 out of 21 categories.

4th round in recent years

This is the fourth time the newspaper has offered a voluntary buyout since 2009.

The Globe and Mail last offered voluntary severance to its employees in 2016. At the time, it offered voluntary buyouts to 40 of its approximately 650 staff in a bid to "right-size the business as it adjusts to market forces."

The newspaper also offered a voluntary buyout in 2013, when 60 staff chose to leave.

Prior to that, the Globe and Mail in 2009 offered buyouts as part of a plan to cut about 10 per cent of its workforce, which amounted to 80 jobs at the time.

The Globe and Mail is wholly owned by the Woodbridge Company Ltd., a private holding company that acts as the primary investment vehicle for Toronto's billionaire Thomson family.