Canadian Printer and Publisher Cuts 1,500 Jobs
Transcontinental also reduces workweek, cuts paid leave.
Montreal-based magazine printer and publisher Transcontinental has instituted what it calls “rationalization measures” which resulted in the elimination of 1,500 jobs, as well as other cost-cutting initiatives at its offices in Canada, the U.S. and Mexico.
Citing the down economy, president and CEO Francois Olivier said the changes will help protect the company’s financial health. “It’s a difficult situation for everyone affected, but we are acting in the interests of all of our employees and our shareholders,” he said.
Transcontinental also has implemented a hiring freeze, reduced workweeks and will not offer paid vacation. The company says the moves will save approximately $75 million, including $50 million in 2009.
In November, the company announced a consolidation of its U.S. subsidiary Transcontinental Direct USA. The consolidation, combined with a company-wide review of production capacity, the closure of plants and shuttering of several titles resulted in the layoffs, the company said.
In addition to its printing services, Transcontinental publishes several magazines, including Elle Canada and Canadian Living.