CanWest Global Communications Corp. (TSX:CGS) will eliminate 560 jobs from its workforce in a bid to reduce a debt burden acquired after taking over Alliance Atlantis Communications in January.

About $61 million in savings will be realized after the news chain – which includes Global Television and the Ottawa Citizen in its lineup – cuts 210 broadcasting and 350 publishing positions, representing about five per cent of its 10,478 employees.

So far the corporation is delaying layoffs in lieu of offering voluntary severance to its employees. It also plans to cut newspaper sizes to save on printing costs.

Shares of CanWest plunged nearly seven per cent yesterday, holding around 85 cents when the Toronto Stock Exchange closed.

The $3.6 billion CanWest owes was an untenable amount in the shrinking economy, said chief executive Leonard Asper in a statement.

"We are implementing a number of initiatives that will provide savings that will allow us to better compete in the current economic environment, without compromising our core products and services," said Mr. Asper. "It will not impact our strategy to invest in growth media like digital online, mobile and specialty channels."

Like other media chains in the country, CanWest has been struggling for revenue as advertisers turn away from print and television advertising to focus on the growing digital market. Only a year ago, CanWest eliminated 100 newspaper jobs through buyouts.

Yesterday's cuts came only two weeks after CanWest failed in its appeal to charge cable providers for Global's signal, a move that would have brought in $75 million in revenue.

"Although over-the-air broadcasters clearly feel strongly that they need the commission's assistance in increasing their revenues, the commission does not have conclusive evidence in order to make a favourable determination on this matter," read the Oct. 30 decision from the Canadian Radio-Television Commission.