The Canadian Journalism Project site J-Source caused Twitter seizures in Canadian media circles yesterday when it reported that the National Post had offered its entire newsroom buyouts.
The report was panned by some as alarmist and making a big deal over a routine media business move.
A source in the Post newsroom told Marketing that the buyout offer was e-mailed to staff on Friday and managers have to approve any buyout, so not all applications will be accepted.
The source said the buyout e-mail was sent not only to the newsroom but across the operation including ad sales and production. They added that the deal makes sense since the fiscal year starts Sept. 1 and Postmedia is still in the process of getting its operational house in order after acquiring the former Canwest newspaper in June.
The source also said the subsequent online reaction was overblown and the mood in the newsroom has not changed: “Business as usual. We’ve been through a lot worse.”
“Across our organization, operations are looking at budgets and strategies for the coming year,” said Postmedia spokesperson Phyllise Gelfand. “They’re looking at ways to focus people in strategic areas, and a digital-first transformation of the business and voluntary buyouts are a tool that publishers can use to address staffing levels and focus on business areas.”
The J-Source report came just more than a week after it was widely reported that Postmedia Network had announced voluntary buyout program at the Victoria Times-Colonist, The Ottawa Citizen and the Pacific Newspaper Group, which publishes The Vancouver Sun and the Vancouver Province.
The Globe and Mail reported that the Edmonton Journal had laid off 20 employees and the Calgary Herald cut 30 positions. The Globe‘s report also said that Postmedia is looking to cut roughly $40-million in costs and, depending on how many employees accept buyouts, layoffs could follow.
Back in July, the company’s first financial report since buying the Post and 10 other Canadian dailies said that revenue at the former Canwest newspaper group was $270 million in the quarter ended May 31, up 1% from the year before.
