Postmedia merges Edmonton Journal & Edmonton Sun newsrooms, lays off 35 including senior editors

Postmedia today announced it is merging newsrooms and cutting about 90 staff across the country. Here in Edmonton, the Journal and the Sun newsrooms have merged and 35 people have been laid off as a result, including Journal editor-in-chief Margo Goodhand.

The Journal
The Journal, photo by Channing McRae

When today started, there were about 90 people in the two newsrooms. That was already down signficantly from peak newsroom sizes – Terry McConnell suggested the Journal newsroom alone had 165 people ten years ago. Losing 35 people in a single day is devastating.

Here are the impacted folks we know about (alphabetically by surname, with links to sources):

You can read the memo that went along with these cuts from Postmedia CEO Paul Godfrey here. Here’s an excerpt:

“What this means is that today we say goodbye to approximately 90 of our talented journalists, colleagues and friends. We will be working closely with those affected to ensure as smooth a transition as possible.”

Postmedia has decided to form “a national sports writing team under the leadership of Bev Wake, Senior Executive Producer, Sports.” While there will be “writers in each of our markets” according to Godfrey, it’s no surprise that the local sports reporters were significantly affected by today’s cuts.

This was obviously a difficult and painful day for many talented journalists here in Edmonton. Jana Pruden, who fortunately remains at the Journal for now, live-tweeted the agony of waiting for the news today.

Why is this happening?

When Postmedia purchased the Sun and other properties from Quebecor last year, it promised to keep the competing papers separate. That strategy has obviously changed. Here’s what Godfrey wrote in his memo today:

“Since the acquisition of the Sun Media brands, we have been working to move our teams together in order to leverage strengths and also to find synergies and savings. We have made progress across our Sales, Marketing, HR, Finance, IT and other administrative functions. The next step is our newsrooms.”

The reason is money. Or as Todd Babiak put it, “Postmedia isn’t a media company in any traditional way, it’s a debt-servicing entity.” From Postmedia’s latest quarterly shareholders’ report:

“Print advertising revenue increased $49.0 million to $142.1 million for the three months ended November 30, 2015 as compared to the same period in prior year. Excluding the impact of the Sun Acquisition, print advertising revenue decreased $16.4 million, or 17.6%, and declines were experienced across all of our major categories including decreases from local advertising of 17.1%, national advertising of 23.4%, and insert advertising of 7.2%. The decreases were due to declines in both volume and rate with the total print advertising linage and average line rate decreasing 11.4% and 9.8%, respectively, during the three months ended November 30, 2015, as compared to the same period in the prior year.”

Print circulation isn’t doing much better:

“Print circulation revenue increased $20.5 million to $67.9 million for the three months ended November 30, 2015 as compared to the same period in the prior year. Excluding the impact of the Sun Acquisition, print circulation revenue decreased $3.2 million, or 6.7%, as a result of paid circulation volume decreasing 7.2%, partially offset by price increases.”

And perhaps most concerning of all, digital revenue is also decreasing:

“Digital revenue increased $5.9 million to $30.2 million for the three months ended November 30, 2015, as compared to the same period in the prior year. Excluding the impact of the Sun Acquisition, digital revenue decreased $1.4 million, or 5.7%, as a result of decreases in local digital advertising revenue of $1.8 million and digital classified revenue of $0.6 million, partially offset by an increase in digital subscription revenue of $0.2 million and other digital revenue of $0.7 million.”

Postmedia is now targeting $80 million in cuts by mid-2017. Some are even suggesting that bankruptcy could be in the cards.

On losing our local editors

You might snicker at the thought that Edmonton had any independence from the mothership in Toronto, but now it’s official that we lack local editors:

“Jose Rodriguez, the Calgary Sun’s editor-in-chief, will oversee both Calgary papers, while current Herald editor Lorne Motley moves to Edmonton to steer the Journal and Sun there.”

It seems that Lorne will actually be moving to Edmonton, but it’s still highly suspect that a perfectly capable editor in Margo is being replaced with someone from our southern neighbour. I know that Margo spoke out about Postmedia’s endorsement of the Conservatives, but I can’t see that as the reason she was let go as some have suggested. If it was, I think we should be surprised to see Paula Simons remain at the Journal, as she heavily criticized the endorsements.

I think it’s an incredible shame to see Margo, Stephanie, and Donna go. Edmonton’s newspapers have lost some experienced editorial leadership and that will have an impact.

On keeping both papers

It’s no surprise to me that both papers will remain, even if they’ll be run entirely by the same folks on both the business and editorial sides of the fence. Here’s what I wrote back in November:

“While there’s a lot of wisdom in combining the sales and business teams from each paper (which has happened) and even sharing physical office space (which is happening) it makes much less sense to combine the editorial teams or otherwise merge the two papers. There’s little overlap between their audiences and a lot of lucrative ad inventory to lose by getting rid of one of the papers. Postmedia has made some surprising decisions in the past so I guess I wouldn’t be completely shocked if it happened, but I also wouldn’t put any money on it.”

So it’s a good thing I didn’t put money on it, because they did go ahead and merge the newsrooms. The papers are separate in name only now.

What does this mean for Edmonton?

While today’s news doesn’t destory journalism in our city, it certainly isn’t good for it. As Paula Simons wrote:

“We’re going to lose many other great reporters, photographers, and editors too. And it will be a loss, not just for us, but for the city they covered so passionately.”

I’m hopeful that many of the individuals impacted today will find new jobs here in Edmonton, but given the state of our economy, I don’t know how realistic that is. And that means we’re potentially losing some key insight, perspectives, and talent to other locations.

On the other hand, innovation often arises out of difficulty. With a poor economy and a sudden increase in free agents with unique skills and experience in the media industry, perhaps we’ll see Edmonton make something new again.

  • Les M

    Two words …The Internet

    • Thomas Thompson

      Chris Epp from CTV wrote: Saying you get news from the internet instead of the paper is like saying you get milk from the carton instead of the cow.

  • Les M

    More to the point … the Internet Killed the Newspaper Industry…