Axe falls at Sault Star - three reporters done tomorrow

Sun Media Corporation will be cutting five-and-a-half jobs at the Sault Star, the newspaper reports.

The Sault layoffs will take effect tomorrow.

Affected are three newsroom positions, as well as two advertising staffers and an office part-timer.

The local cuts are part of Sun Media's company-wide effort to reduce its national workforce by approximately 10 percent, or about 600 full-time positions.

The news comes as the newspaper industry responds to economic downturn and new competition from Internet-based media.

The Sudbury Star is cutting seven jobs.

Six jobs will be lost at the North Bay Nugget.

The following news release was issued today by parent company Quebecor.

************************* Sun Media announces workforce reductions

TORONTO, December 16, 2008 - As a result of the fundamental transformation under way in the newspaper industry in recent years and the accelerated deterioration of economic activity affecting its print media revenue sources, Sun Media Corporation, Canada's largest publisher of newspapers, has announced that it will reduce its workforce by approximately 600 full-time equivalent positions as part of a major restructuring of its operations in Western Canada, Ontario and Québec.

The staff reductions, the vast majority of which will occur by the end of the year, represents about 10 percent of the company's workforce, excluding mail room operations, for which staff count fluctuates based on volume.

This initiative is expected to result in restructuring costs of approximately $14 million.

This move is in response to major changes affecting the print media industry worldwide, driven by the growing availability of free access to media, changing readership habits as audiences move to the Internet, the advent of real-time information and digital transferability.

The economic slowdown, rising costs and falling advertising revenues were also factors in the decision, which will help secure Sun Media's future.

"The speed at which the current economic environment is deteriorating forces us to make difficult decisions at this time of the year," said Pierre Karl Péladeau, president and chief executive officer of Quebecor. "This decision in no way changes our commitment to our publications, our readers and our advertisers. We will continue to invest in the business. We have a responsibility to offer Canadians the type of news coverage they are entitled to expect from the country's largest newspaper publisher, which is to say high-quality journalism focused on local news and exclusive features that meets changing consumer needs and habits."

"The news industry is being revolutionized and we have to adapt if we want to remain an industry leader. We need to build a presence and build our brand in the digital universe and we need to do it as quickly as possible. We have to let customers get the information they want on the platform of their choice," added Mr. Péladeau.

Sun Media Corporation

Sun Media Corporation, a member of the Quebecor family of companies, is Canada's largest newspaper publisher.

With 43 paid-circulation and free dailies in Canada's key urban markets and more than 200 community newspapers, shopping guides and other speciality publications, Sun Media's English- and French-language papers are leaders in providing local news and information to more than 10.5 million readers every week.

Sun Media Corporation is also involved in the operation of SUN TV, a general-interest television station in Toronto, and provides a range of commercial printing and related services as well as distribution for newspapers, flyers and magazines.

For additional details, visit our parent company's website at www.quebecor.com

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