Postmedia Network Canada Corp. has said it would sack up to 40 employees after some of its unions did not approve a short-term salary reduction proposed to help cut down on costs as COVID-19 pandemic persists.
In a memo sent to members of staff, the company said it wanted the load of cost reduction to be shared fairly across its operations as the scale of the crisis and shocking revenue declined by more than 30 per cent.
The memo, which was posted on social media, says Postmedia will advance with about 40 permanent reductions and the figure was confirmed by a company spokeswoman.
The memo says the company’s request for a short-term salary reduction was rejected by the unions that represent its workers. Also, it says the company and the unions were unable to agree to other cost-reduction measures.
Last month, Postmedia announced around eight percent revenue drop for its second quarter that ended on February 29.
