Transcontinental cutting 1,500 jobs

Printing company Transcontinental Inc. said Tuesday it is cutting 1,500 jobs as it reduces its costs because customers are slashing their spending in the recession.

The cuts work out to about 10 per cent of the company's workforce.

The Montreal-based company said commercial printing projects, direct mail projects and magazine advertising placements have been cancelled or postponed in recent weeks.

"It's a difficult situation for everyone affected, but we are acting in the interests of all of our employees and our shareholders," said François Olivier, president and CEO of Transcontinental. "In the short term, this rationalization comes at a cost, but in the medium term it will protect the corporation's financial health."

In addition to cutting jobs, Transcontinental said it has also implemented a hiring freeze, and bringing in unpaid leave, reduced work weeks and other measures. Senior managers have decided to take two weeks of unpaid leave, but they will work throughout that period.

The moves will cut Transcontinental's costs by about $75 million annually, including $50 million in 2009, the company said.

"We plan to maintain our prudent balance between our profits, costs, debt and investments," said Olivier.