Posted by madcityradio.com on April 28, 2009 at 19:41:56:
In Reply to: CC Cuts More Staff, Suspends 401(k) Funds posted by madcityradio.com on April 28, 2009 at 19:21:44:
CLEAR CHANNEL has announced another major wave of staff reductions resulting in the loss of 590 positions, just over 3% of the company, focusing on positions in programming, on-air, engineering, information technology and business office posts such as accounting and customer service.
While on-air programming is part of this reduction, it's not the majority of it, even though they are the majority of names we have that are out. Those positions will be filled with a combination of syndication and premium choice programming.
This second wave of restructuring follows the initial downsizing that was the result of a comprehensive analysis by the folks at BAIN, which began on JANUARY 20th with the loss of approximately 1,850 positions, which was 9% of the workforce (NET NEWS 1/20). This brings the total of eliminated positions to about 2,440, or 12% off of DECEMBER 2008 staffing levels.
CLEAR CHANNEL is indicating that this downsizing should be it, but adds the caveat that it can't predict the future. Based on analysis, and if the economy and market conditions hold and CLEAR CHANNEL keeps outperforming the rest of the industry, any further large reductions in force are not anticipated.
A company-wide change announced in parallel is that after APRIL 30th, 401k matching would be suspended for this year. It will, however, be retroactively restored if 90% of the 2009 budget goals are met for employees who continue to contribute to the 401k plan, and are eligible.
CCR is not cancelling bonus opportunities. They will, as they have been, be based on performance and will be paid quarterly in sales and annually for non-sales.
In company wide memo, CLEAR CHANNEL RADIO Pres./CEO JOHN HOGAN said, "In JANUARY, we took the first steps to adjust our business to the realities that all media companies face this year. Those actions were in response to initial results of a thorough analysis of every part of our business. The actions weren't easy and were necessary to make sure we remain competitive this year, and are in the best possible position once the economy begins to recover. Today, we completed the adjustments based on the final results of that analysis.
"The introduction of technology brings tremendous efficiencies to every industry, and also fundamentally changes the way business is done. On a personal level, one of the most difficult contradictions technology creates is that increased productivity effectively eliminates jobs. The media industry is no different than any other business in this respect.
"This is the time for creative thinking about better ways to engage our audiences. This is the time to find new ways to bring more value to our marketing partners and advertisers. This is the time to make smart decisions about resources, costs and investments.
"We see enormous long-term opportunity in our business ... if we continue to do the right things to make our company better and even more competitive. I thank you for your hard work and dedication, and look forward to working with you to realize that success," concluded HOGAN.
New National Personalities
Here are some of the names of some CLEAR CHANNEL personalities who will now be heard around the country, replacing some of the local personalities who have been downsized:
WAXQ/NEW YORK middayer MARIA MILTO
WXTB/TAMPA middayer BIG RIG
WFBQ/INDIANAPOLIS afternooner LAURA STEELE
WTUE/DAYTON afternooner JOHN "THE B-MAN" BEAULIEU
WHTZ/NEW YORK night dude BILLY THE KIDD
KIIS/LOS ANGELES middayer SISANIE
WDCG/RALEIGH PD/afternooner RANDI WEST
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