Quebecor World faces more cutbacks
Quebecor World Inc. said it will close one US facility and significantly downsize a Canadian facility as part of its three-year retooling program, resulting in the loss of approximately 700 full-time jobs.
Earlier this month, Quebecor World said it will close its Magog, Quebec, facility, which produces magazines and retail inserts, resulting in a loss of approximately 300 full-time positions.
News of the latest closings follows the release of the printing company's 2007 year-end financial results, which reflect a net loss of $2.2 billion for the year. Revenues in 2007 totaled $5.7 billion compared to $6.1 billion in 2006.
On January 21, Quebecor World filed for creditor protection in the United States and Canada due to its inability to raise new capital in the current market environment and to complete the sale of its European operations.
Quebecor World's North Haven, CT, facility will be closed by the end of the second quarter. It primarily produces general commercial printed products. The Islington facility in Etobicoke, Ontario will be significantly downsized. It produces retail flyers, catalogs and binds directories. Volume from both facilities will be relocated to newer, larger facilities.
Quebecor World could not be reached for comment.
Since filing for bankruptcy protection in January, Quebecor World lost its contract with Rogers Communications Inc. Rogers' more than 70 titles include Chatelaine, Maclean's and Canadian Business; it went on to sign a six-year, $210 million agreement with Transcontinental Inc. The Economist has given Quebecor World notice that it may want to opt out of its printing contract when the agreement expires in September. Quebecor has reported winning and renewing other contracts worth $75 million.
