Postmedia is shuttering the doors of 12 of its Alberta community print newspapers, effective Feb. 27, moving them to digital-only platforms in an apparent move to put a Bandaid on bleeding revenues..In addition to the 12 community papers, Postmedia also publishes the Calgary Sun, Calgary Herald, Edmonton Sun and Edmonton Journal..It was also announced the Calgary Herald building was sold for $17.25 million to U-Haul Co..The moves were announced Wednesday, following the release of the company’s quarterly results last week..Postmedia Network Canada Corp. posted a net loss in the quarter ending Nov. 30, 2022, of $15.9 million, compared to $4.4 million in the same period the prior year..This despite the company receiving $64.9 million from the federal government as part of the Canada Emergency Wage Subsidy program from mid-2020 to May 2021, according to a Postmedia report issued last July..In its 2020 annual report, CEO Andrew MacLeod said Postmedia would likely not have been profitable if not for over $35 million in government funds that year and named “government support” as one of its business's four key pillars..The news that the 12 newspapers were going 100% digital was announced Wednesday in an internal memo to staff, that describes the measures as part of a "tremendous" transformation plan geared toward managing costs.."Businesses everywhere have been facing similar pressures from a widespread economic contraction that has intensified over the past six months. We have seen this in technology, manufacturing and in media," MacLeod said in the memo. "That intensified pressure means that we must accelerate our transformation.".He also said an unspecified number of jobs will be eliminated across Postmedia, through hiring freezes and layoffs.."This is absolutely not a reflection on the hard work and contributions they have made to our company, but rather an outcome of economic contraction that has affected so many companies globally and the inherent challenges of our industry," he wrote..Closing the 12 print operations is just the latest in a series of moves by Postmedia to stem its losses, which include closing small-town newspapers, reducing print production of some of its titles and resorting to layoffs and voluntary buyouts to manage costs..Last October, Postmedia announced the discontinuation of the Monday print editions of the Vancouver Sun, The Province, Calgary Herald, Calgary Sun, Edmonton Journal, Edmonton Sun, Ottawa Citizen, Ottawa Sun and Montreal Gazette, citing the needs of advertisers and rising costs of printing and delivering a printed product..The newspaper industry, as a whole, has been struggling with dwindling subscriber numbers, the rise of big tech companies taking away profits and more advertising moving to online from print. .MacLeod did not name the newspapers that will be making the switch to digital-only formats, but a dozen Alberta Postmedia outlet ran notices Wednesday, telling readers their print versions would be ending. .These include the Airdrie Echo, Vermillion Standard, Cold Lake Sun, Peace Country News, Drayton Valley Western Review, Hanna Herald, Pincher Creek Echo, Bow Valley Crag and Canyon, Whitecourt Star, Leduc County Market, Cochrane Times and Fort McMurray Today..“We know that this amount of change is unsettling, but we must continue to focus on our strategy and delivering for our audiences, clients and partners," said Macleod.
Postmedia is shuttering the doors of 12 of its Alberta community print newspapers, effective Feb. 27, moving them to digital-only platforms in an apparent move to put a Bandaid on bleeding revenues..In addition to the 12 community papers, Postmedia also publishes the Calgary Sun, Calgary Herald, Edmonton Sun and Edmonton Journal..It was also announced the Calgary Herald building was sold for $17.25 million to U-Haul Co..The moves were announced Wednesday, following the release of the company’s quarterly results last week..Postmedia Network Canada Corp. posted a net loss in the quarter ending Nov. 30, 2022, of $15.9 million, compared to $4.4 million in the same period the prior year..This despite the company receiving $64.9 million from the federal government as part of the Canada Emergency Wage Subsidy program from mid-2020 to May 2021, according to a Postmedia report issued last July..In its 2020 annual report, CEO Andrew MacLeod said Postmedia would likely not have been profitable if not for over $35 million in government funds that year and named “government support” as one of its business's four key pillars..The news that the 12 newspapers were going 100% digital was announced Wednesday in an internal memo to staff, that describes the measures as part of a "tremendous" transformation plan geared toward managing costs.."Businesses everywhere have been facing similar pressures from a widespread economic contraction that has intensified over the past six months. We have seen this in technology, manufacturing and in media," MacLeod said in the memo. "That intensified pressure means that we must accelerate our transformation.".He also said an unspecified number of jobs will be eliminated across Postmedia, through hiring freezes and layoffs.."This is absolutely not a reflection on the hard work and contributions they have made to our company, but rather an outcome of economic contraction that has affected so many companies globally and the inherent challenges of our industry," he wrote..Closing the 12 print operations is just the latest in a series of moves by Postmedia to stem its losses, which include closing small-town newspapers, reducing print production of some of its titles and resorting to layoffs and voluntary buyouts to manage costs..Last October, Postmedia announced the discontinuation of the Monday print editions of the Vancouver Sun, The Province, Calgary Herald, Calgary Sun, Edmonton Journal, Edmonton Sun, Ottawa Citizen, Ottawa Sun and Montreal Gazette, citing the needs of advertisers and rising costs of printing and delivering a printed product..The newspaper industry, as a whole, has been struggling with dwindling subscriber numbers, the rise of big tech companies taking away profits and more advertising moving to online from print. .MacLeod did not name the newspapers that will be making the switch to digital-only formats, but a dozen Alberta Postmedia outlet ran notices Wednesday, telling readers their print versions would be ending. .These include the Airdrie Echo, Vermillion Standard, Cold Lake Sun, Peace Country News, Drayton Valley Western Review, Hanna Herald, Pincher Creek Echo, Bow Valley Crag and Canyon, Whitecourt Star, Leduc County Market, Cochrane Times and Fort McMurray Today..“We know that this amount of change is unsettling, but we must continue to focus on our strategy and delivering for our audiences, clients and partners," said Macleod.
