Transcontinental Slashes 1,500 Jobs
MONTREAL—Transcontinental has implemented rationalization measures to address the recession, including the elimination of about 1,500 jobs. Substantive cost-cutting measures are being implemented at plants throughout the United States, Canada and Mexico. The foundering economy has tempered the communication and marketing investments of a number of Transcontinental’s customers, significantly affecting some of the printer’s business niches. Commercial printing jobs, direct mail projects and magazine advertising placements have been cancelled or postponed by companies that have been hit by the recession.
Among the other measures Transcontinental has taken in its cost-cutting initiative: a hiring freeze, unpaid leave and reduced work weeks. Transcontinental’s senior managers have decided to take two weeks of unpaid leave, but to work throughout that period. These measures will cut costs by about C$75 million on an annualized basis, including C$50 million in 2009.