The Toronto Star is restructuring its operations and could be laying off both advertising and editorial staff in a bid to “create a sustainable business model for the Toronto Star of the future.”
According to an internal memo publisher John Cruickshank sent to staff on Thursday, the biggest change will be in the advertising division with the outsourcing of advertising sales moving to Metro English Canada, an affiliated free daily publication in which Star Media Group holds a majority stake.
Star spokesperson Bob Hepburn confirmed to Marketing on Thursday afternoon that the changes could impact 72 unionized staff across the country, plus some managers and non-union staff.
Hepburn added that the employees’ union has an opportunity to come back with an alternative proposal. “We’ve announced that it’s our intention to outsource, but there is a provision in the Guild contract for them to propose an alternative if they desire. These changes do not take effect today.”
Cruickshank’s memo said Metro’s print and digital platforms are seeing revenue and audience growth, and wrote that “Metro is well positioned to offer [ad sales] because it has both a regional audience complementary to that of the Star as well as audiences across the country.”
The company also plans to reduce cost and staff in other areas – editorial (specifically five editorial assistant roles, said Hepburn), other advertising roles (with plans to outsource pre-press, layout and support staff) and finance/administration (where services including switchboard and messenger functions will likely be outsourced and accounting staff will be reduced).
The changes are being made in response to a drop in advertising revenue at the Star, wrote Cruickshank. In its most recent financial report, Torstar (which owns the daily paper) recorded a loss of $70.6 million.
Citing the demand for “creative, multi-platform and multi-product solutions” by marketers and agencies, he wrote that the restructuring “will better position the Star and Metro, together with other Star Media Group brands and publications, as leading providers in Canada of effective, compelling and distinctive marketing solutions.”
