Postmedia to lay off 80, permanently shut 15 papers

Postmedia Network Inc. will lay off about 80 employees and permanently close 15 community publications as the newspaper conglomerate navigates the financial fallout of COVID-19.

“Our business, like so many, has been hard hit by the freeze imposed across the Canadian economy and around the world,” CEO Andrew MacLeod wrote Tuesday in a memo to staff obtained by The Canadian Press. The print and digital advertising revenue impact of the crisis “has been very significant,” he said.

“I believe Postmedia has taken every possible short-term step to stabilize our business against these unprecedented tidal forces.”

The company is “fully utilizing every government subsidy announced,” but more must be done to weather the industry’s “huge declines” in revenue.

Postmedia will shutter 15 community newspapers in Manitoba and Ontario’s Windsor-Essex area for good, the memo says, calling the publications “not financially sustainable.” The closures include the Selkirk Journal, Prairie Farmer and Napanee Guide.

The company owns nine publications in Manitoba, according to its website, and dozens across Ontario.

It will also shut down Town Media Events, a group that produced consumer events such as the Gourmet Food and Wine Expo.

About 30 people will lose their jobs as a result of the permanent closings.

An additional roughly 50 people in the company’s sales and sales operations teams will be laid off for three months, after which Postmedia will re-evaluate the decision, he said. The temporarily laid off workers can access the Canada Emergency Response Benefit — that provides up to $500 weekly for many of those who have lost their jobs due to the pandemic — and receive company benefits.

Remaining staff who earn $60,000 or more, except commissioned advertising sales representatives, will receive a salary reduction for at least three months, MacLeod said.

MacLeod will take the steepest pay cut at 30 per cent, according to the memo.

Executive vice-presidents will lose 20 per cent of their pay, senior vice-presidents 17.5 per cent, directors 10 per cent and managers and supervisors eight per cent. Remaining staff will see a five per cent drop, though the memo notes these cuts will be capped so no one falls below $60,000 annually.