Canada’s online advertising industry set to be hit with record-low wages
Canada’s largest online advertising company will begin laying off hundreds of workers in a bid to shore up its business amid a sharp downturn in the U.S. economy.
The company announced Wednesday that it is closing its offices in the city of Quebec City and its Quebec headquarters and laying off up to 2,000 employees in the country’s biggest city.
The Quebec company, the first to announce its layoff plans, will also cut more than 2,500 jobs across the country, including 1,200 in Montreal.
The layoffs are expected to affect a total of 2,200 employees across the province.
The Montreal-based company will lay off its entire Quebec office workforce by early February, with some of those positions expected to be replaced by temporary workers.
The news comes as the country struggles with record low advertising revenues and plummeting online advertising revenues.
“This is a difficult time for our company and its employees,” chief executive officer Daniel Hébert said in a statement.
We remain committed to our goal of growing our business and supporting our employees. “
The loss of this number of jobs will not have a material impact on our business.
The layoffs come as the company is in the midst of a huge advertising campaign in Montreal that will kick off in the second quarter. “
I’m looking forward to meeting with our employees to discuss our plans moving forward.”
The layoffs come as the company is in the midst of a huge advertising campaign in Montreal that will kick off in the second quarter.
The ads are part of an ambitious effort to expand the business beyond its core Quebec market.
“Advertising revenues in Canada have fallen by almost 50 per cent since 2008 and our ad revenues are declining at a rate of over 20 per cent,” the company said in its statement.
The announcement comes as online advertising is being pushed further out of reach of most Canadians as the U and U.K. recover from their economic downturns.
“It is a sad day when we see a company like The Globe and Mail having to make such tough decisions,” said Daniela D’Amelio, a spokeswoman for the Association of Canadian Publishers.
“They are putting Canadians and their livelihoods at risk.
We are disappointed in the actions of this company.”
The Globe said it would lay off some of its employees and close other parts of its Montreal office.
It will also make other cuts to staff levels across the company, including those in the marketing, business development, customer service and communications departments.
The cuts will come as advertising revenue in Canada has dropped by almost half since 2008.
According to the National Association of Broadcasters, the advertising industry is expected to fall by another 20 per 100 Canadians in the coming year.
The U.P.P., which represents the Canadian and U,K.
broadcast media, said it expects the industry’s revenue to fall further this year as the economic downturn has hit many smaller markets with less advertising dollars.
The decline in advertising revenues has hurt the U,UK and Canadian media industry.
“As the U U. K. and the U:UK markets have struggled, smaller markets in the European and North American markets have seen a large drop in their advertising revenues,” the association said in the statement.