A well-established pulp and paper company in Canada has stopped operations, laying off more than 1,000 employees due to lack of demand for newsprint, as print media players start to shift online for delivery of news to their readers.
Catalyst Paper, a large pulp and paper mill in western Canada, has decided to layoff over a thousand employees due to plummeting demand for newsprint and other paper products.
At its peak, it employed more than 1,000 workers and produced 700 tons of newsprint per day. Then emails replaced posted letters, online news began eroding print media's readership, and China launched production of cheap paper, Inquirer.net reports:
Brian Johnson, Catalyst Paper's vice president, cited two events that led to the closure of the plant, telling Inquirer.net, "There is the current recession that we are facing plus there is what we would call the structural decline in the market, where people are reading less, fewer papers."
The continuing decline of print media readership is evidently caused by the shift in reading habits from traditional print sources to the now popular Internet or online news sources.
The changing readership patterns among consumers in the past few years has resulted in the closure of several newspapers. Most companies that stopped publishing their newspapers have shifted online for delivery of news to their readers.
Early this year, the 146-year-old Seattle Post-Intelligencer closed shop for lack of advertising revenue needed to support its operations.
This was followed up by the closure of the Rocky Mountain News in Colorado, and the San Francisco Chronicle was reported to have trimmed down operations for a planned shift to online news delivery. Other U.S. newspapers have stopped printing and gradually shifted to online publishing.
As these established pulp and paper companies cease operations because of changes in the news industry, thousands of workers are being left without a job.