Postmedia announced Tuesday that it will close 15 of its regional publications and reduce its expenditures, leading to even hit 80 cuts of positions.
According to an internal note signed by the president and chief executive officer of Postmedia’s Andrew MacLeod, in particular, relayed by “J-Source”, 15 regional newspapers located in Manitoba and Ontario will close their doors as early as 4 may.
“The publications affected are not profitable, and the closures will be permanent,” said Mr. MacLeod, stating that these closures, as well as that of Town Media Events, results in the elimination of 30 jobs.
In addition, a fifty employees working for the sales team have been temporarily laid off because of the “significant decrease in advertising revenues”
In parallel, all employees of Postmedia earning more than $ 60,000 per year will be needed to absorb a decrease in salary ranging from 5 to 20 %, depending on their position. Andrew MacLeod will be entitled to a cut of 30 %.
“Our business, like many others, has been hit hard by the freeze of the canadian and global economy. The impact on the advertising revenues, both print and online, has been very significant,” said Mr. MacLeod, in his note to his employees.
“These decisions are very difficult and have been taken only after analyzing all other options. The measures that we take today is intended to put our company in the best possible position to emerge from this crisis by pursuing our strategic plan”, he added.