The pending purchase of Atlantic Canada’s largest newspaper chain by Postmedia is expected to result in job cuts and a reduction in local content. Postmedia has a history of closing unprofitable publications, having shut down 57 news outlets since 2008, more than any other media company in Canada. This strategy of cutting expenses and reducing the number of reporters on the ground is likely to continue if the deal with SaltWire Network Inc. and The Halifax Herald Ltd. goes through. Postmedia owns several major publications, including the National Post and Vancouver Sun, and the acquisition is subject to approval from the Nova Scotia Supreme Court and unionized workers.
Postmedia is known for limiting its investments in local news, causing concern among journalism experts about the impact on local democracy. While federal programs like the Local Journalism Initiative and Canadian journalism labour tax credit have provided some help to struggling media businesses, more support is needed to build a local news ecosystem that meets the needs of communities. The COVID-19 pandemic worsened financial challenges for media companies, with government subsidies drying up and advertising revenue not bouncing back to pre-pandemic levels. This has led to a resurgence in cost-cutting and the closure of operations within the industry.
Despite criticism for its cost-cutting strategies, it is important to note that other media companies, including SaltWire, have also closed numerous news outlets in recent years. A total of 521 news outlets have been shuttered since 2008, the majority being community newspapers. The decline in editorial staff at major newspapers like the Halifax Chronicle Herald and Ottawa Citizen is reflective of a broader trend across the country. The decrease in reporters from about 100 to two dozen at the Chronicle Herald and from 190 to about two dozen at the Ottawa Citizen illustrates the significant impact of job cuts on newsrooms.
The expert tracking Canada’s mainstream media industry, April Lindgren, emphasizes that the employment landscape for journalists has become increasingly challenging, with layoffs being not uncommon. The acquisition of SaltWire and The Halifax Herald by Postmedia is likely to further exacerbate this trend. Magda Konieczna, a journalism professor at Concordia University, stresses the importance of investing in local news to protect local democracy. While government programs have provided some relief for struggling media companies, additional policy support is needed to ensure the sustainability of local news ecosystems. It remains to be seen how the acquisition will impact job cuts, local content, and the overall media landscape in Atlantic Canada.
