Bill Doskoch: Media, BPS*, Film, Minutiae

Curated knowledge, trenchant insights & witty bon mots

Postmedia looks to save further 20 per cent on salary costs

As print revenues continue their steep decline, Postmedia announced it wants to reduce salary costs by a further 20 per cent.

From the Globe and Mail (“Postmedia to cut more jobs as net loss spikes“):

The latest round of planned staff reductions – through voluntary buyouts, followed by involuntary layoffs if necessary – comes amid a worsening slump. In earnings unveiled on Thursday, the company said its net loss spiked by 84 per cent to $99.4-million in the fourth quarter as print advertising sales fell by more than 20 per cent.

Still, the most recent cost cuts raise the question of just how deep the company can cut before impairing its ability to produce and sell its content across a nationwide chain of newspapers and digital properties.

“You don’t know when you’re cutting through the bone until you’ve done it,” Postmedia chief executive officer Paul Godfrey said in an interview on Thursday.

Postmedia’s full-time-equivalent staff headcount has been falling for more than a half decade – from 5,400 in 2010 to 2,500 last year. Its deal last April to purchase Sun Media’s English-language newspapers and digital properties from Quebecor Inc. added 2,300 staff, bringing the total to roughly 4,800. But that number is now closer to 4,000, according to the company.

“We’ve said over the last five years, three or four times, ‘God, we can’t go any further, we can’t go any further.’ And yet we always have been able to,” Mr. Godfrey said in an interview with The Globe and Mail last year.

Thu, October 20 2016 » Main Page, Media