Torstar to cut 85 jobs by Roma Luciw
Source : Globe & Mail
December 20, 2006
Torstar Corp. is restructuring its newspaper division, cutting around 85 jobs and taking an $11-million charge in a bid to cut costs.
The Toronto-based newspaper and book publisher announced early on Wednesday that it has undertaken a "combination of voluntary and involuntary restructurings" that result in around 85 job cuts.
The company said it expects to take a restructuring charge of around $11-million in the fourth quarter. Annual savings from the job cuts are expected to be in the range of $5.5-million.
Shares of Torstar, which recently traded near five-year lows, fell 8 cents or 0.4 per cent to $19.17 in the opening minutes of trading on Wednesday. The stock has dropped 13.1 per cent this year.
Torstar's flagship newspaper, The Toronto Star, has been struggling with a decline in advertising revenue. The top two executives at Canada's largest daily paper, the publisher and the top editor, were recently replaced in an effort to revive operations.
Torstar's profit fell for the fourth-straight quarter last month. The company made $7.7-million in its fiscal third quarter, down 67 per cent from the same period last year.
The Harlequin book division, hit hard by currency woes, has been replaced by the Metroland newspaper division — which publishes newspapers across Ontario — as the company's top financial performer.
With files from reporter Grant Robertson.
© Globe and Mail
The Toronto-based newspaper and book publisher announced early on Wednesday that it has undertaken a "combination of voluntary and involuntary restructurings" that result in around 85 job cuts.
The company said it expects to take a restructuring charge of around $11-million in the fourth quarter. Annual savings from the job cuts are expected to be in the range of $5.5-million.
Shares of Torstar, which recently traded near five-year lows, fell 8 cents or 0.4 per cent to $19.17 in the opening minutes of trading on Wednesday. The stock has dropped 13.1 per cent this year.
Torstar's flagship newspaper, The Toronto Star, has been struggling with a decline in advertising revenue. The top two executives at Canada's largest daily paper, the publisher and the top editor, were recently replaced in an effort to revive operations.
Torstar's profit fell for the fourth-straight quarter last month. The company made $7.7-million in its fiscal third quarter, down 67 per cent from the same period last year.
The Harlequin book division, hit hard by currency woes, has been replaced by the Metroland newspaper division — which publishes newspapers across Ontario — as the company's top financial performer.
With files from reporter Grant Robertson.
© Globe and Mail
