The country’s largest newspaper chain, Postmedia Network Canada Corp., is merging once-competing newsrooms and cutting about 90 staff as it tries to cope with declining revenue and a heavy debt load.
In Vancouver, Calgary, Edmonton and Ottawa – cities where Postmedia owns two daily papers – editorial staff will be joined together to work under one senior editor, filing stories and images to both publications. But the company is not closing any newspapers, promising to continue publishing two in each city, albeit with less distinctive content and fewer rival reporters working local beats.
Last April, as Postmedia closed a deal to buy 175 newspapers and digital publications from Quebecor Inc., executives from the company were promising that the newly acquired Calgary Sun, Edmonton Sun and Ottawa Sun would remain competitors with the Calgary Herald, Edmonton Journal and Ottawa Citizen. The consolidation of written media that resulted was unprecedented for Canada, but Postmedia stressed that newsrooms would stay separate, pointing to its existing control of both the Vancouver Province and Vancouver Sun.
Tuesday’s partial about-face is the latest fallout from a dismal financial stretch for Postmedia, which has suffered from steep revenue declines driven by falling demand for print advertising at the same time that it has struggled to bear the weight of more than $670-million in debt. The company has responded by relentlessly cutting costs in the past few years, recently increasing its $50-million savings target to $80-million by mid-2017.
“This is an enormous concentration of media control into a few hands,” said Jerry Dias, national president of Unifor, which represents about a dozen employees who were let go. “Centralized news-gathering and opinions, including in local news, do not add to the national debate that helps build a functioning democracy.”
To read the full story visit the Toronto Globe and Mail where it was originally published
Jason Barrett is the President and Founder of Barrett Media since the company was created in September 2015. Prior to its arrival, JB served as a sports radio programmer, launching brands such as 95.7 The Game in San Francisco, and 101 ESPN in St. Louis. He also spent time programming SportsTalk 950 in Philadelphia, 590 The Fan KFNS in St. Louis, and ESPN 1340/1390 in Poughkeepsie, NY. Jason also worked on-air and behind the scenes in local radio at 101.5 WPDH, WTBQ 1110AM, and WPYX 106.5. He also spent two years on the national stage, producing radio shows for ESPN Radio in Bristol, CT. Among them included the Dan Patrick Show, and GameNight.
You can find JB on Twitter @SportsRadioPD. He’s also reachable by email at Jason@BarrettMedia.com.
