Monday afternoon Clear Channel held its first earnings conference call since the company named Bob Pittman CEO of the company on October 2nd. Pittman was asked about the layoffs that have been sacking programmers and jocks in many small and medium markets under the Clear Channel umbrella. The layoffs have been big news, not only in the radio trades, but in newspapers all across the country. Pittman said of the reporting "I'm not sure anyone in the press got it right." And what it came down to was the determination that small and medium markets were just putting out some bad radio.
Pittman reiterated the latest firings were not about saving money. And, without actually coming right out and saying it, what he was implying was that Clear Channel came to the conclusion that small and medium market radio just doesn't cut it anymore. Pittman said "The driving force was: We have all these assets. How can we make it better?" The horrible thing is that some people lost their jobs. By the way, at the same time, we are adding jobs at the national level and in digital. This is a reallocation of resources and a different way of doing business, realizing that the world is different in 2011. After this reorganization, the businesses will be in great shape to operate better and improve the quality of performance and generate more revenue."
Pittman says this was not one of the efforts to reduce cost in the company. "This was truly an effort to improve the quality that we offer to those people. Any company that started before the Internet is outmoded in terms of operational structures. We took a very hard look at the smaller markets. I know what you are up against in those small markets. And I'm very excited about what John #Hogan# and his team have put together here."
(11/1/2011 6:12:23 AM)
This is not a cost cutting measure...well why would they need to cut more, when they are squeezing more out of their remaining workers and paying them less? This is a fact. Also, I am sure many of the newly unemployeed are glad they got a free subscription to Radio Ink so they can read more about how bad they really are. Geez...the fact is, this is a political move...cut the workforce, drive up the unemployment rate, force a change in the White House. The problem is, the law of diminishing returns. Eventually no one will have any money to spend with CC's clients.
(11/1/2011 5:59:40 AM)
..sounds like voice tracking, remote voices, and automation in Clear's small markets.
(11/1/2011 2:49:30 AM)
I'd be curious to know if these comments were delivered with a straight face.
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