Canada’s biggest newspaper publisher, Sun Media, is cutting 600 jobs in Western Canada, Ontario and Quebec as it restructures in the face of harsh economic conditions.
The chain, owned by Montreal-based media giant Quebecor Inc., said today the cuts will trim about 10% of its workforce, with most coming by the end of the year.
“The news industry is being revolutionized and we have to adapt if we want to remain an industry leader,” said CEO Pierre Karl Peladeau in a release.
“We need to build a presence and build our brand in the digital universe and we need to do it as quickly as possible. We have to let customers get the information they want on the platform of their choice.”
Peladeau said the economic environment is deteriorating quickly, forcing the publisher to make “difficult decisions.” The move is expected to result in restructuring costs of about $14 million.
The company declined to specify how the layoffs would be divided amongst its operations, which include Sun-branded newspapers across the country and other local papers.
Quebecor said the cuts are a needed response to a major shift in the print media industry, including the growing popularity of the Internet. The economic slowdown, rising costs and falling advertising revenues were also major factors behind the cuts.
Other major Canadian media companies have been making similar reductions at their operations.
Rogers Communications Inc. laid off an unspecified number of employees in its media division, which includes television, publishing and digital operations as well as employees of the Toronto Blue Jays.
Last month, CTVglobemedia cut about 105 positions, mostly at its “music and youth” channels MuchMusic, MuchMoreMusic and MTV Canada, as well as the CTV News division.
And Canwest Global Communications Corp. slashed 560 positions, or about 5% of its workforce.
Brad Honywill, local president of the Southern Ontario Newspaper Guild, which represents more than 700 Sun Media staff, said he’s worried that job cuts will cripple the local media.
“These cutbacks mean there will be more and more shared stories and, consequently, less local news,” he said in a release.
“It’s our hope, and Sun Media’s responsibility, to restore these jobs when the economy improves.”
Despite the layoffs at Sun Media, Peladeau said investments will continue to be made in the business.
“We have a responsibility to offer Canadians the type of news coverage they are entitled to expect from the country’s largest newspaper publisher, which is to say high-quality journalism focused on local news and exclusive features that meets changing consumer needs and habits,” he said.
“We need to build a presence and build our brand in the digital universe and we need to do it as quickly as possible. We have to let customers get the information they want on the platform of their choice.”
Last month, Peladeau stepped into the lead position of Sun Media Corp. and the Canoe online operation following what the company called a “disappointing” third quarter.
Quebecor reported that its newspaper operating income fell 13.3% to $52.1 million.
Sun Media publishes 43 paid-circulation and free dailies under the Sun, Osprey Media and 24 Hours banners and more than 200 community newspapers, shopping guides and other speciality publications.
It is also involved in the operation of SUN TV, a general-interest television station in Toronto.
