Torstar Corp., the publisher of the Toronto Star and other papers, is replacing its CEO, slashing its dividend and warning of further restructuring and job cuts after a huge $211.2-million quarterly loss.
Outgoing president and CEO Robert Prichard told analysts Thursday the company has been reining in operating costs, but that hasn’t been enough to turn the business around.
Prichard will step down as CEO at the company’s annual meeting this spring. His departure also involves other executive shuffling at the media company that will see former Toronto Star publisher John Honderich become chairman of the company.
Honderich is part of the family trust that controls the newspaper company and stepped aside as publisher after 15 years at the helm of Canada’s largest paper about three years after Prichard became CEO of the parent company in 2001.
Honderich will replace Frank Iacobucci, the former Supreme Court of Canada judge who has been Torstar chairman since 2005.
In another development, Torstar also slashed its annual dividend in half to 37 cents a share from 74 cents to conserve cash.