The Globe and Mail, Canada's premier newspaper, is looking to shed bodies in an attempt to slice operating costs. The move is being blamed on a moribund advertising climate.
From The Canadian Press via Google News:
The newspaper's publisher and CEO Phillip Crawley told The Canadian Press on Friday that the company will need to cut about 80 positions through a buyout package - and if that's not enough then he'll have to issue layoffs.
Crawley said a sharp downturn in print advertising revenue in the last six months because of the weakening economy has forced the newspaper to cut its operating costs.
"The savings we've made so far are still not sufficient enough for us to meet our financial targets for the year," he said.
The national paper, owned by parent company CTVglobemedia*, has so far avoided major job losses tied to the struggling economy.
* Note: I'm a CTVglobemedia employee; I work as a web writer for ctvtoronto.ca
However, Crawley said that sliding advertising revenues have hit the newspaper hard, considering that it thrives on selling ad space for jobs and careers, as well as the real estate and automotive industries.
All those areas have been hit particularly hard in the economic downturn of recent months and could suffer even more this year until the economy recovers from recession.
Housing and auto sales have fallen off badly in part because of the credit crunch and consumer confidence that has dropped to levels not seen since the recession of the early 1980s, the worst economic downturn since the Second World War.
Crawley noted that only about 30 people took part in a buyout program in 2004, which is why he's speculating that layoffs might be possible.
I hope this assessment is excessively gloomy:
The latest cuts are another blow to the media industry, and Canadian democracy, said Brad Honywill, president of local 87M of the Communications, Energy and Paperworkers union, which represents Globe employees.
He said he's concerned that the lower advertising revenues will force newspapers out of business. In Toronto, where the Globe is headquartered, it competes with the Toronto Star, Toronto Sun, National Post and several free dailies.
"I fear it won't be long before we lose some of those players," he said.
"I fear that when we come out of this recession the media landscape in this country is going to look entirely different - it's being devastated," he said.
Strangely, some see that as a good thing. From the #nash thread at Twitter (Canadian University Press national conference):
JoeyColeman: @mattfrehner That's right. When the old guys are gone, we're taking over and we will make the media even better than the "golden days"#NASH
twishes: [-O] #nash makes me wish Twitter was around when I was a student journo. Enthusiasm for all things Web gives.. http://tinyurl.com/8njcg2
mattfrehner: #nash makes me wish Twitter was around when I was a student journo. Enthusiasm for all things Web gives me hope for Can media post meltdown.
JoeyColeman: #NASH - on the dying theme - the problem in the media is old guys not understanding things. 10yrs from now when they retire, it be better.
Joey Coleman understands so much.