A memo to staff at Rogers Media Inc. from Tony Viner, president and CEO, says that today's layoffs are, predictably, a response to the "global economic turmoil" and a "decline in advertising spending" that is "deeper and steeper than most media companies anticipated." He also noted that the layoff "decisions had absolutely nothing to do with individual job performance." Full memo after the break.
The global economic turmoil that started with the U.S. financial crisis some months ago continues to deepen. Although we do not have a crystal ball, various factors indicate that this very tough economic situation is going to continue through most of 2009. While we at Rogers Media are not directly impacted by the credit crisis, it has affected our advertising partners’ ability to act on the promotional plans upon which we rely. Globally, the decline in advertising spending is deeper and steeper than most media companies anticipated. Although we have implemented various prudent cost controls over the past several months, today we are announcing that we have had to make the very difficult decision to eliminate a number of positions across the various companies under the Rogers Media umbrella and at the Toronto Blue Jays. The decision to eliminate these positions was made after very careful consideration by the leaders of our various impacted business units. These decisions had absolutely nothing to do with individual job performance. I understand how difficult it can be to say goodbye to our former team members. I firmly believe, however, that the decision to right-size in order to quickly deal with the global economic reality is the right decision for our businesses. And while I am aware that this news is as unsettling to hear as it is to share, I have to emphasize the confidence I have in the talent of our people. Our brands are the leaders in their categories and we will continue to invest prudently in order to ensure that we protect that leadership position. We will continue to expand our portfolio through new launches. Some of our individual business units also plan on hiring new talent in the coming months in order to align our resources where the market is telling us to be. In conclusion, I would like to emphasize that we are well-poised not only to deal with today’s current economic challenges, but also to maximize our success when the market bounces back. You will receive more information from your local management team shortly. If you have any questions about today’s changes, please bring them to the attention of your supervisor.
President and CEO