Torstar Fires Almost 300 Staff, Closes Plant in Cost-Cutting Bidby
Canada's best-selling daily newspaper to outsource printing
Transcontinental will picks up another printing deal
Torstar Corp., publisher of Canada’s largest-circulation newspaper, is firing almost 300 staff and outsourcing its printing operations to Transcontinental Inc. to cut costs.
The Toronto-based company expects a C$22 million ($15 million) charge because of severance pay to the 220 full-time and 65-part time employees affected and other costs, it said in a statement. Cost savings will add up to C$10 million annually after the plant is closed. Torstar will also sell the property, which occupies 43 acres of land near Toronto.
Torstar is the latest of Canada’s major newspaper publishers to outsource its printing as shrinking advertising revenues push them to cut costs. Postmedia Network Canada Corp., which owns many of the country’s daily newspapers, and the Globe and Mail both already have deals with Montreal-based Transcontinental.
Torstar’s stock is down 60 percent to C$2.45 over the past 12 months. Montreal-based Transcontinental shares have risen 4.6 percent over the same time.