Postmedia lost nearly $5.1 million in its second quarter as revenue dropped 7.5 per cent compared with last year as a result of shifting advertising and circulation patterns
Godfrey, who has been Postmedia's CEO since the company was founded in 2010, will stay on as executive chairman
Employees of the two local publications will not be moving from their current workplace, according to the release
Staff at the two local newspapers have been without a contract for 34 months.
Postmedia said in a letter that it will consider permanent job cuts if a labour disruption happens
Executive chairman Paul Godfrey said that the revenue declines from its legacy business had slowed and the company "is making some progress" from its digital advertising initiatives.
November deal led to the closure of nine Ottawa newspapers and dozens more across Ontario.
Canada's largest newspaper chain, which publishes the Ottawa Citizen and Ottawa Sun says revenues fell 10.3 per cent to $189M.
Meanwhile, union and opposition party leaders are urging the federal government to step in to aid the struggling print industry.
Metro Ottawa, Kanata Kourier-Standard, Nepean/Barrhaven News, Stittsville News, Orleans News, and Ottawa East, West and South News all set to close by mid-January