Yellow media, the Montreal-based publisher, announced that it would cut 10% of workforce. The business is going to focus on its digital business instead. Users switches from published media to online media over the past few years. As a result, the print sales of Yellow Media keep falling.

To react to changes in consumer preference, Yellow media changes its focus to online media. In my opinion, it is the right policy for the business to adapt to changes in market. Print media is declining so Yellow Media should cut its work force in print media.

Also, corporate customers, mainly advertisers, tend to shift to digital products to advertise. Therefore revenue from those advertisers will fall and Yellow Media should cut its expenditure on work force in order to maximize it profit.

However, cutting work force is not good for its reputation and the workers will be less motivated because they may fear that they may be cut.

http://www.bnn.ca/News/2013/11/12/Yellow-Media-to-cut-10-of-workforce.aspx