Resolute Slashes 300 Jobs
CBJ – The continuing decline of newsprint plans as a result of daily and weekly newspapers and magazines struggling in this new digital age has resulted in Resolute Forest Products permanently closing newsprint plants across Canada representing 16% of its total capacity.
Resolute is one of the world’s largest newsprint makers, but business has been in decline for about a decade now as more media sites become available online and a growing number of Canadians get their news by surfing the Internet either on mobile devices or laptop computers.
A plant in Iroquois Falls and paper machines at its Baie-Comeau and Clermont factories in Quebec are being shut down in a move that will cut 465,000 metric tons of capacity.
“Market conditions have had a major impact on our newsprint operations in both Ontario and Quebec,” Chief Executive Officer Richard Garneau said in a statement to the media. “The cost position of these operations has made them vulnerable to the structural decline in newsprint.”
Resolute, which emerged from bankruptcy in 2010, has struggled with a decline in demand as newspapers have lost readers and advertisers to the Internet. As of last year, Resolute had cut its reliance on newsprint to a third of revenue, down from 41% in 2007, by increasing its capacity to produce lumber and wood pulp.