It’s been a while since we had news about triple-digit job cuts. Today’s news is that Postmedia (my employer) and Torstar have come to an agreement where they swap dozens of newspapers and shut most of them down.
No cash is being exchanged in the transaction.
Most of the newspapers going either way are Ontario-based community publications, but there are four major-market free dailies affected: Metro Ottawa, Metro Winnipeg, 24 Hours Toronto and 24 Hours Vancouver. All will close.
J-Source reports that Postmedia’s closing of ex-Torstar papers will result in 244 job losses. Torstar’s closing of ex-Postmedia papers will lay off another 46, for a total of 290.
Competition Bureau approval is not required for the transaction, the companies say, so there’s no government regulatory step required for the deal. The bureau did nothing to stop the deal between Postmedia and Quebecor that saw major-market dailies come under the same roof. Nevertheless, the bureau says it will review the deal after the fact.
As bad as the news is, and as many communities are losing local coverage, the deal won’t be cutting the last local paper out of most communities. Many are community papers covering parts of cities that have a daily, or competed directly with another newspaper being kept. Exceptions are the tiny town of St. Marys, near London, and Meaford, near Owen Sound.
There’s also Barrie and Northumberland, which lose dailies but are still covered by weeklies.
More coverage and reaction from:
- J-Source (plus a later story with social media posts of people losing their jobs)
- Globe and Mail
- Toronto Star
- Financial Post
- BNN, which interviews Postmedia’s Paul Godfrey
- CBC Ottawa (focused on eastern Ontario)
- Georgia Straight (focused on 24H Vancouver)