Layoffs had to be made to bring stability to St. John's Telegram, Postmedia CEO says

The CEO of Postmedia says the company is committed to growing local news outlets acquired through the Saltwire Network, but says layoffs and staffing changes had to happen in order to rebuild.

"It's been in business for over a century, but of course changes have to occur. It was deeply unprofitable in its former state, and we have to find a way to ... break even in the short-term," Postmedia CEO Andrew MacLeod said of its newest asset, the St. John's Telegram, on Thursday.

"Nothing would make us happier than to start to reinvest and build and grow both the print and the digital edition. And with support from the community and Newfoundlanders, we think we'll be able to do that."

Postmedia's acquisition of the Nova Scotia-based newspaper publishing company, which faced insolvency, has sent ripples through Atlantic Canadian media, including in St. John's.

The Telegram has been in business for over 145 years, but announced that 30 per cent of its editorial staff would be laid off following the Postmedia buyout.

But while the union that represents workers at the Telegram said those cuts included the paper's photojournalists — a statement that came from photojournalist Keith Gosse — MacLeod disputed the claim, saying they've instead been retooled.

"I think that's been debunked. I think that was just candidly an error on someone's part," he said.

"I believe very confidently that they'll continue to perform the roles that they've performed in the past specific to photojournalism. That doesn't mean that there aren't going to be some modifications to their roles, and everyone's roles. I think this entire industry needs to adapt and change."

Changes have also been made to how the paper is presented, as the Telegram has shifted from being printed daily to once a week.

Postmedia didn't purchase the Telegram's printing press in the agreement, but MacLeod said that isn't specific to Newfoundland and Labrador. Postmedia made the decision to cut in-house printing operations across the Saltwire Network.

He said it was made for efficiency purposes, adding that other news organizations have chosen the same path as demand for a physical newspaper shrinks.

"As difficult as that is for the workers involved in that decision, that allows us to create more stability and efficiency that we can then reinvest in our core objective. Which is news, which is journalists, which is providing the community with information," MacLeod said.

Speaking to CBC News earlier this month, Chris Waddell, professor emeritus of journalism at Ottawa's Carleton University, voiced concerns over how the cuts could impact the Telegram's ability to produce Newfoundland and Labrador content.

MacLeod said adaptation has become a mantra in the newspaper industry, and said that although readers might see more national or international content, local content is still key.