Canadian newspaper giant Sun Media, which publishes fifteen daily titles, 189 community weeklies and a number of specialty magazines in Canada and Florida, is to slash almost five percent of its 6,059 staff – three hundred and two jobs in all.
The decision follows the plunge into the red of parent conglomerate Quebecor, which last week revealed a first quarter loss of $17 million – attributable, it said, to its purchase of Groupe Videotron in October (for which it still awaits regulatory approval), losses at subsidiary companies and other costs.
The jobs cull at Sun is intended "to reduce operating costs and improve productivity". Sun itself remains in the black, although operating profit for the quarter fell to $23 million, down year-on-year from $28m.
According to a Sun spoke: "We have been adversely affected by the slowdown of the economy, the increase in newsprint prices and lower-than-expected advertising revenues."
News source: Wall Street Journal