Canwest to reduce workforce, operating costs
By Adnews Staff
Canwest Global Communications of Winnipeg plans to reduce its workforce by 560 job positions, or approximately five percent. The move is part of an initiative by the company to cut its operating costs by $61 million. A restructuring of the news operations at E stations will result in the loss of 210 positions. A number of changes at Canwest Publishing will eliminate 350 positions. These initiatives a restructuring of the community newspaper group, streamlining some production processes and a width reduction in some Canwest newspapers. The National Post will now focus on profitable markets and reduce its presence in unproductive and discounted circulation. According to the company, the delivery of news and information will not be affected by the changes. Canwest also plans to improve its conventional television ratings and its market positions in newspapers and specialty channels. The company will also continue to invest in areas such as online video, video-on-demand and specialty channels. "Having completed an assessment of our Canadian operations, we are implementing a number of initiatives that will provide savings that will allow us to better compete in the current economic environment without compromising our core products and services," said Leonard Asper, president and CEO of Canwest. "Although it was a very difficult decision to implement staff reductions, we believe that these actions are required to enable Canwest to maintain its strength, build market position and be ready at the first sign of an economic recovery. While we anticipate that advertising revenues will be negatively affected by the current economic slowdown, Canwest's diversified revenue base and strong fiscal management will see it though this period and management remains dedicated to taking the necessary steps to provide the company with the flexibility required over the longer-term while building for the future."