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Sun Media Corporation announced Tuesday a restructuring initiative expected to result in over $45 million in annual savings.
The moves, which include the closure of production facilities in Ottawa and Kingston, include the elimination of nearly 500 positions across the organization.
“This restructuring is regrettable but warranted by changes in our industry which force us to align our cost structure with the new reality,” said Pierre Karl Peladeau, president and CEO of Sun Media.
“With the recent announcement of a major strategic redesign of Sun Media’s organizational structure, restructuring further streamlines and optimizes our operations. By doing so, Sun Media is proactively leading the way to ensure long term success.”
Peladeau said the initiative doesn’t diminish his company’s commitment to its publications, readers, advertisers or employees.
“We will continue to deliver quality content, with local presence, and maximum value to our advertisers,” he said. “We very much regret the impact that this has on employees who are departing our organization and would like to thank them for their contribution.”
The Toronto stock exchange was slightly higher in the afternoon, but lost some of its earlier momentum.
The S&P/TSX composite index gained 5 points to 12,427.
That’s after rising more than 55 points earlier in the session.
In commodities, gold prices lost much of their shine.
Bullion had risen more than $15 in the morning, but was trading up $1.90 near midday.
And the November crude contract gained 56 cents to $92.98 U-S a barrel on the Nymex.
Shares of RIM were lower as the company looked into a BlackBerry outage that affected users in Europe, Middle East and Africa. Chief executive Thorsten Heins released a statement apologizing for the outage, and the company says the technical glitch has been resolved. Meanwhile the new iphone 5 launch left stores empty as it exceeds expectations for Apple.
On Wall Street, the Dow gained 20 points to 13,620.
The Nasdaq moved ahead 15 points.
The Canadian dollar was higher after a report from Statistics Canada showed that Canada’s inflation rate continued to slide in August. The loonie rose 11-one-hundredths of a cent to 102.52 cents U-S.
