In September of 2011 it was announced that shares in Yellow Media (whom owns Canpages) tumbled nearly 40% after declaring that their assets were worth less than originally thought. Because of that, share prices began to tumble.
This past week Yellow Media announced plans to cut jobs of Canpages employees as part of a restructuring plan for their company while they focus more of the company efforts on their internet services. Yellow Media plans to keep their Canpages online phone directory business working and streamline their print operations.
“From an online and mobile perspective, the Canpages brand will continue to exist,” Anne Sophie Roy, with Yellow Media’s investor relations department, said in an interview Wednesday.
Roy wouldn’t comment on how many jobs would be affected due to this business decision, or how many Canpage directories would stop being published to save on costs.
Canpages is among many company in 2011-2012 that have begun restructuring their business operations.
Yellow Media has noted their online revenues represented more than 27% of total online revenues for the 3rd quarter of 2011, in comparison to 20% in the previous year. Roy noted that Canpages.ca will still function as a local commercial phone directory online but the company plans to relaunch the site with a different user experience in the near future.
Yellow Pages reported purchasing Canpages for $225 million just two years ago as a means of expanding their online phone directory business. Yellow Pages has been struggling over the past few years as it attempts to restructure itself as an internet company.
The publishers of Yellow Pages phone directory logged a $2.9 billion writedown to its business worth last September, driving down company stock prices. The company has also stopped paying dividends lasty year to help improve their financial position. Last year Yellow Media also sold AutoTrader magazine for $725 million to help reduce their debt.