Transcontinental Cutting Workforce: 1,500 Jobs

Citing the "rapid deterioration of the economy" and subsequent reduction in activity by its customers, Transcontinental has initiated major downsizing, including the elimination of 1,500 jobs throughout Canada, the U.S. and Mexico. "It’s a difficult situation for everyone affected, but we are acting in the interests of all of our employees and our shareholders," states François Olivier, Transcontinental president and CEO, in a statement. "In the short term, this rationalization comes at a cost, but in the medium term it will protect the Corporation’s financial health." The rationalizing will include the closure of plants (no specifics) and the termination of some publications. Capital investments, except for those assigned to outsourced newspaper printing, have been reduced. "We plan to maintain our prudent balance between our profits, costs, debt and investments," said Olivier. Other measures include Transcontinental employees being asked to consider unpaid leave, reduced work weeks and other measures. Senior managers are taking two weeks of unpaid leave, but they will continue to work throughout that period (unpaid unleave). It’s believed the cost cutting will save some $75 million on an annualized basis.