The Toronto Star is laying off 30 employees as it shutters its Star Touch tablet app — a multi-million dollar bet on bringing in younger readership that failed to meet management expectations.
Twenty-nine full-time employees and one part-timer have been notified that they will lose their jobs, said Toronto Star spokesman Bob Hepburn. Some of those employees will continue to work for a while longer and some may be able to stay with the company if they choose to act on a bumping provision contained in their contracts, he said.
Torstar CEO and Toronto Star publisher John Boynton hinted that the app might be on the chopping block in a May interview as the media company, like others in the industry, battles declines in print advertising revenue and weaker-than-desired digital ad revenue.
Boynton, who took over as Torstar CEO in March, sent a memo to staff Monday saying the decision comes after an in-depth review of digital options for mobile devices and tablets.