11 July 2012
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Globe and Mail via The Guardian
One of Canada's leading, but ailing, newspaper publishing groups,
Postmedia Network, has announced a new round of cutbacks. But the
company has not revealed what those cuts will entail. However, during a conference call with journalists, Postmedia executives
did refer to a range of initiatives, such as format changes, property
sales, outsourcing and redundancies. In a three-year programme, the company is seeking to reduce its reliance
on print advertising in preparation for a digital future.
Chief executive Paul Godfrey said: "Going forward we'll be a smaller
revenue company and a smaller expense company," adding that the
publisher aims to lower its expenses by up to 20 percent, about CAD 120m.
The news comes just months after the company - which publishes the
National Post, Calgary Herald, Ottawa Citizen and Vancouver Sun plus
several other titles - announced job losses and a broad restructuring
that centralised production. In late May, the company also said it would close its wire service and
stop printing Sunday papers in some markets in a bid to save up to CAD 40m.
Though Godfrey said six months ago that the industry's problems were
mostly related to a weak economy, he conceded that the money isn't
likely to come back. The company said it lost CAD 12.1m in the last quarter, compared
with a loss of CAD 2.7m in the same quarter last year. Revenue
slipped 6.9 percent to CAD 212m.
Original source