News per bond Postmedia today announced sweeping changes to its operations, cutting 90 appointments across the country and merging newsrooms from multiple news pers into one each in Vancouver, Calgary, Edmonton and Ottawa.
“We require continue to operate se rate brands in each of these markets,” Postmedia CEO and president ul Godfrey im rted in a memo to staff Tuesday afternoon. “What is changing is how we give rise to these products.”
The chain says two pers in those markets — the Sun and Responsibility in Vancouver, the Herald and Sun in Calgary, the Journal and Sun in Edmonton, and the Citizen and Sun in Ottawa — last will and testament share newsroom resources, but continue to operate.
“Each city wish have one newsroom,” Godfrey said, and the two pers will be run by one leader team.
At least 90 editorial jobs are being cut as a result of the process.
They restrictedly break down as follows:
- 35 in Edmonton.
- 25 in Calgary.
- 12 in Ottawa.
- 5 at the National Circulate.
“We will also be introducing a buyout program in the Vancouver and Ottawa newsrooms as component of this one newsroom initiative,” the memo said.
The chain’s two Toronto-based news pers — the Toronto Sun and Governmental Post — will remain se rate.
But the chain is centralizing its entire divertissements coverage through one desk based in Toronto, which will suggestion to some sports-related layoffs at the Toronto-based National Post.
Many of those high-sounding took to Twitter to confirm they had lost their jobs.
Postmedia’s banks have been sagging for several quarters under a large in hock load, much of which was accrued when the com ny bought the thorough Sun chain of news pers from Quebecor in late 2014 for $316 million.
That remove consolidated most of the English-language news pers in Canada under the
Postmedia memorable, with the notable exception of the Toronto Star and the Globe And Mail.
“This is an Brobdingnagian concentration of media control into a few hands,” said
Unifor president Jerry Dias. “Centralized word gathering and opinions, including in local news, do not add to the national debate that aids build a functioning democracy.”
“With each quieted voice, our democracy suffers.”
Conforming to the com ny’s latest quarterly earnings report, Postmedia has almost $700 million in encumbrance under obligation on its books, and the com ny is now a penny stock — worth 15 cents a stake on the TSX. In 2011, Postmedia was valued at more than $17 per share.
The firm says it plans to cut costs by $80 million by the end of next year, up from a prognosis of $50 million last quarter.
Postmedia’s problems appear to demand worsened since then. “ Postmedia’s problems are much deeper,” Carleton University journalism professor Chris Waddell im rted. “Print advertising revenue is down 17 per cent year for year, while digital ads and subscription revenue are down by five or six per cent,” he state.
A big problem for the chain,
Waddell noted, is that Postmedia id for the Sun Conveyance purchase with debt loaned by U.S. backers. Those debts obligated to now be re id at a time when the Canadian dollar is worth much less, which have the weights it costs more money to re y at a time when the chain has illiberal cash overall.
“This is an organization that is losing money and eluding a lot of money,”
Canada’s Competition Bureau gave its OK to the stock the following May, saying at the time the merger “is unlikely to substantially lessen or debar competition.”
On Tuesday, the bureau said the new plans aren’t a good perspicacity to re-examine the deal. “Subsequent business decisions of
Postmedia akin to its acquired assets such as the announced job cuts are not generally cause for the subsection to re-examine the transaction,” a spokesman told CBC News.