Saltwire Lays Off 27 Employees As Flyer Business Declines
HALIFAX–For decades, the newspaper business has relied on flyer inserts to make up a significant portion of its revenue. But a recent decision by newspaper chain Saltwire shows that may be changing.
In a memo sent to employees late last week, the company said it is laying off 27 people as it moves its St. John’s, Newfoundland flyer-packaging operations to the “highly-automated Halifax production centre, where production costs are significantly lower.”
“We expect the final number [of job losses] to be reduced by other job openings within the business by the time the transition is completed in mid-June,” reads the memo. “We will be working with union representatives to support all the affected employees.”
The memo also touched on the current state of flyer delivery. It notes that, during the pandemic, this area of the business has been reduced across the board, and the future of flyers looks bleak.
“One area that has continued to show challenges is our national flyer business,” it reads. “We have seen volumes continue to decline over the past two years and feedback from the national agencies is that this trend is not going to rebound.”
This isn’t the first time since the beginning of the pandemic that Saltwire has looked to cut back on staffing. In December, the company offered severance packages to employees with at least two years’ experience, if they volunteered for layoffs.
The severance offer was 1.5 weeks of pay for each year they have been with the company, with a maximum payout of 39 weeks.
In June of 2020, with the advertising business plummeting due to Covid-19 pressures, Saltwire laid off 109 employees, 61 of which were in Nova Scotia.
Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].