ST. JOHN'S, N.L. — To all readers,
Like many industries and businesses, the economic ripple effect of COVID-19 has hit our local newspaper media industry faster and far more aggressively than we could have ever planned for or anticipated.
With many of our advertising customers temporarily stopping operations, nearly two-thirds of our revenue has disappeared overnight. It is not an exaggeration to say if we continue with the same business model we have today there will not be a company to come back to once this crisis has passed.
We have shared our fragile situation with government, but the reality is government efforts have been rightly focused on public health and safety and financial safety nets for individuals affected at this time. No practical financial assistance is being provided to businesses our size. Government is doing what it can — and over the long run we hope they can provide the support we need — but they are simply unable to move quickly enough to backstop the urgent realities we are facing.
As a result, our company must take immediate action to protect the viability of the business and the long-term employment of all our colleagues. We are working within a 12-week timeframe and are taking extraordinary measures during this window to get everyone through this crisis.
Please know these decisions deeply impact our SaltWire family. This is not what we want to do, but it's what we must do. Effective Wednesday, March 25, the following changes to SaltWire's business operations will occur:
• The production of all weekly publications (both free and paid-for) in Newfoundland and Labrador and Nova Scotia will be suspended for the next 12 weeks.
• SaltWire will continue to produce — both in print and online — four dailies: The Telegram, The Chronicle Herald, the Cape Breton Post and The Guardian. SaltWire will also continue to provide flyer distribution throughout this period.
• On a temporary 12-week basis, The Guardian and The Journal Pioneer in P.E.I. will be combined, with Journal Pioneer subscribers receiving The Guardian on a daily basis.
• All Nova Scotia subscribers to paid weeklies will be provided with the weekend edition of The Chronicle Herald.
• As a result of the operational changes, we have no choice but to make the very difficult and painful decision to temporarily lay off nearly 40 per cent of our workforce. SaltWire staff was made aware of these changes Tuesday afternoon. Supports in accordance with the Government of Canada's programs have been put into place to help employees through these difficult times and the company will continue to provide health benefits to those on temporary layoff.
• Remaining employees having salaries over a certain amount per year will be asked to reduce their hours of work and have their pay reduced accordingly for up to the same 12-week period.
With all the changes outlined above, we are planning for a three-month period and hoping for less. But to date, this crisis has been riddled with unknowns and uncertainties. For that reason, readers should plan for the outlined plan to be in effect until the week of June 15, 2020.
Based on our current reality, we are certain the plan we have outlined is our best and only option to navigate economic and market conditions.
As a dedicated reader, the best help that you can offer at this time is to use your voice. Encourage your friends and family to take out a subscription or speak to your government official and ask them to redirect their advertising and communications spending from American-owned companies like Google, Facebook and Twitter and invest in locally owned media companies.
Given the recent decline in advertising spending, we know local businesses all over Atlantic Canada need us now more than ever. Like always, we encourage our readers to buy and support local when and where possible.
Finally, please know your support of local journalism matters. For those who have been reading our stories, sharing our links online, flipping through the newspaper, commenting to a neighbour about the latest update you've read, I ask that if you are in a position to do so, please consider purchasing a membership. Your support is critical in a time like this.
For those members and partners who have been with us, please know your ongoing support of our business means that Atlantic Canadians continue to get the critical information they need.
Thank you.
Mark Lever,
President and CEO, SaltWire Network
