Postmedia CEO warns of even some-more cost-cutting to come

Postmedia CEO Paul Godfrey told investors that “a concentration on cost-saving is essential to relocating a attention forward.” (Nathan Denette/Canadian Press)

​After new rounds of mass layoffs, Postmedia is warning that it still needs to cut costs after income plummeted by 13.5 per cent in a latest quarter.

The company, one of Canada’s largest in a news media industry, has been incompetent to shake declines in imitation promotion and dissemination income that have taken punch after punch from a bottom line.

“In a meridian of continued bequest income decline, a concentration on cost-saving is essential to relocating a attention forward,” Postmedia CEO Paul Godfrey pronounced Thursday in a discussion call with investors.

“We contingency continue to work towards a cost structure that reflects a income existence that we face.”

• Layoff notices handed out during Vancouver Sun and Province
• Montreal Gazette, Ottawa Citizen remove 15 positions in Postmedia layoff

Last October, Postmedia announced a devise to revoke a income waste by 20 per cent and instituted a intentional buy out program.

Godfrey pronounced progressing this year that devise did not move about adequate assets and a association would cut some-more jobs.

Recently, Postmedia laid off 54 employees during a B.C. papers, a Vancouver Sun and a Province.

For a second entertain finished Feb. 28, Postmedia pronounced it mislaid $26.5 million or 28 cents per share, an alleviation from waste of $225.1 million or 80 cents per share in a same duration a year ago.

This year’s second entertain was giveaway of any item impairments, compared with a $187 million writedown final year.

Postmedia’s bill was also helped by a $21.6 million decrease in handling expenses, especially due to cost-saving measures. But a company’s sum income fell by $28.3 million to $180.8 million, essentially since of descending imitation advertising.

Digital income rose by $2.6 million, or 10.3 per cent, to $28.1 million.

Article source: http://www.cbc.ca/news/business/postmedia-second-quarter-1.4059138?cmp=rss