Transcontinental has cut 1500 jobs throughout the U.S., Canada and Mexico, thanks to what the company termed the rapid deterioration of the economy.
Specifically, direct mail and commercial printing projects and magazine advertising placements have been cancelled or postponed by companies that have been hit by the recession, the Montreal-based printer said.
Financial institutions account for a large portion of Transcontinental’s direct mail printing customers. Turmoil in this sector is having an adverse affect on direct mail advertising programs in that sector, the company said.
“Following an extensive capacity review of our U.S. direct mail operations, Transcontinental has acted to quickly address the negative impact of current market conditions,” the firm said in a statement.
This move is apparently Transcontinental’s latest round of layoffs.
Last fall, Transcontinental Direct USA Inc. said it was cutting 460 jobs and consolidating direct mail printing operations, because direct mail advertising has declined sharply for financial offers (Direct Newsline, Nov. 3, 2008).
Canada’s largest printer said it was shutting down U.S. operations in Warminster, PA. Equipment and production are being transferred and consolidated at another plant also located in the state.
