(WINDSOR, ON) – In the midst of a rights offering and final prospectus filed by PostMedia Inc, reports are now circulating that the Canadian newspaper conglomerate has announced layoffs and offered voluntary buyouts at three of its news outlets. In order to cut costs, and presumably to raise the needed $173.5 million through its rights offering on February 17, an undisclosed number of national reporters have been laid off.
Applications for the voluntary buyouts are due on February 19, two days after the rights offering. Buyouts have been offered at the Windsor Star, the Montreal Gazette, and the Ottawa Citizen
Communications v-p at PostMedia, Phyllise Gelfand, confirmed with media that the layoffs are part of consolidating national coverage out of Toronto. A year ago, PostMedia laid off reporters at their Parliament Hill bureau in consolidation efforts. The latest layoffs came to light via social media and later confirmed by PostMedia.
The national film critic for Postmedia, Katherine Monk, tweeted Thursday afternoon, “I have just been terminated by Postmedia News Network. Free at least, free at last…” Later Monk tweeted, “The whole network got axed. I guess a company that loses money every quarter isn’t sustainable.”
Postmedia announced in January that the corporation lost revenues of $10.3 million in the last quarter, or 13%.