From California to New York and every radio market in between the industry is experiencing a workforce reduction led by its two biggest companies, Cumulus and Clear Channel. Combined, Cumulus and Clear Channel own 1,400 radio stations in 266 markets. There's nowhere to hide. No market is safe, past performance no longer matters. In fact, if you've earned your way to the top (ie: Jack Swanson) and the raises that go along with success you are just as likely to get whacked.
Swanson was well paid, that salary needed to go. If you've been doing three jobs (insert name here) and someone doing 20 can pick up your three, pack it up fella. It's operational efficiency mode. Debts need to be paid and, unfortunately, you may just be a number on spread sheet. DELETE. If your performance is average, and can be done elsewhere, why do you need to be there? That's the way it is these days. Like it or lump it. Business is business and Clear Channel and Cumulus are doing what many other corporations in America would do to get expenses down and show investors they're working toward their obligations.
Clear Channel will wrap up two days of managers meetings in Chicago today. Yesterday, many people were getting word to pack up and move on. We heard from so many and it didn't matter what shift, what station, what market. And, while Clear Channel says this is not about cutting costs (see next story) few will believe that for a second. A person familiar with the Clear Channel debt situation tells Radio Ink Clear Channel has $3.8 billion maturing in 2014 and $12.7 billion maturing in 2016. Clear Channel is supposed to be below 6x leverage but it?s running 9+. These are numbers Clear Channel spokesman would not respond to.
Executives we spoke to yesterday also said they understand Clear Channel is trying to restructure its debt but nobody knows where that stands. For now, many radio employees are simply working in fear. They wonder if today will be their last day and they even wonder if their immediate supervisor will throw them under the bus to save his or her own skin. Of course, at the end of the day, aside from the unfortunate reality that the radio road is being littered with dead bodies today, the big question is will the listeners notice and do the advertisers care. Does live and local even matter anymore to the listener in the age of the PPM and Pandora?
Add a Comment Send This Story To A Friend
