According to Inside Music Media Clear Channel is about to do another round of layoffs.
At Monday’s Katz meeting in which Clear Channel invited competing radio groups to hear a Nielsen presentation, insensitive Clear Channel execs were talking intensely about big layoffs that are coming in May – within a few weeks.
The target for this round of RIFs (reduction in force) is programming and on-air talent.
One of the reasons The Evil Empire would brag about such cutbacks is because they are trying to get other radio groups to adopt what they call transactional selling -- regional call centers, direct media buying and other forms of selling that would not involve relationship selling.
That’s because Clear Channel is getting out of relationship selling and into robo calling and online media buying.
They can’t be having their competitors on the street beating them up. Clear Channel needs a level playing field.
So they march out Nielsen who they just about own because no radio group pays Nielsen more money for PPM than Clear Channel.
They do a dummied up ROI (Return on Investment) presentation and try using a legitimate research company for an illegitimate purpose.
Clear Channel boasted of hundreds more cutbacks in programming just weeks after firing an estimated 300 plus sales executives in round one of what will be an ugly year for Clear Channel sellers.
They are salivating.
Clear Channel is on a mission to reduce their workforce only weeks after devastating sales.
Here’s what to expect within weeks:
A large programming RIF that could affect at least 300 or more people.
Program directors, operations managers, off air assistants, whatever marketing or promotion people are left and on-air talent.
Remaining big salary on-air personalities are being targeted because cutting these folks makes the most sense to Clear Channel bean counters.
Keep in mind that Clear Channel and co-parent Bain use outside help to show them how to effect cost savings. These companies are clueless about how radio stations operate. I say that because if you expect the programming cutbacks to make sense, you’re asking too much. The bean counters are bounty hunters for big salaries.
The most security goes to the programming and on-air talent that make the least money although as with the recent sales RIFs if the boss goes, the assistant goes with them.
Clear Channel is prepared to press Premiere and/or national format programs to replace local talent.
If Clear Channel fired their entire staff and left no one standing, it still would not make a dent in their almost $21 billion in debt. And you saw their smoke and mirrors refinance of debt yesterday using a Texas company to generate more cash. The Evil Empire has been burning through cash at a record pace.
One more thing about sales RIFs – they are still ongoing. The carnage continues to mount.
Let’s do the math.
Some 300 sellers were fired over the past few weeks.
If you assume that the average salary saved was $50,000 taking into account both higher salaried sales management and lower earning sales assistants, The Evil Empire saved $18 million.
That’s less than what Bob Pittman spent on his $21 million mist tunnel renovation of his New York offices.
I mean, they’re paying John Hogan millions a year on his contract and that is getting them nothing.
And I’m not even offsetting that $18 million dollar sales RIF saving with what Clear Channel lost in business because sellers were fired.
Regional call centers are sure as hell not picking up the slack.
All of this is about turning Clear Channel into a tower and transmitter company.
They are selling their tower sites.
Consolidating offices down to the minimum – who needs local studios.
And with the help of their bitch – excuse me, I mean Nielsen they will be paving the way for radio to be bought on a transactional basis – online, no people.
Media buyers want this.
And why would that be?
Because they will start bidding down radio spot prices. I want to see desperate companies like Clear Channel turn down whatever online media buyers are willing to pay in an automatic sales transaction.
Like they are going to not accept the buy.
Be careful what you wish for.
At Monday’s Katz meeting in which Clear Channel invited competing radio groups to hear a Nielsen presentation, insensitive Clear Channel execs were talking intensely about big layoffs that are coming in May – within a few weeks.
The target for this round of RIFs (reduction in force) is programming and on-air talent.
One of the reasons The Evil Empire would brag about such cutbacks is because they are trying to get other radio groups to adopt what they call transactional selling -- regional call centers, direct media buying and other forms of selling that would not involve relationship selling.
That’s because Clear Channel is getting out of relationship selling and into robo calling and online media buying.
They can’t be having their competitors on the street beating them up. Clear Channel needs a level playing field.
So they march out Nielsen who they just about own because no radio group pays Nielsen more money for PPM than Clear Channel.
They do a dummied up ROI (Return on Investment) presentation and try using a legitimate research company for an illegitimate purpose.
Clear Channel boasted of hundreds more cutbacks in programming just weeks after firing an estimated 300 plus sales executives in round one of what will be an ugly year for Clear Channel sellers.
They are salivating.
Clear Channel is on a mission to reduce their workforce only weeks after devastating sales.
Here’s what to expect within weeks:
A large programming RIF that could affect at least 300 or more people.
Program directors, operations managers, off air assistants, whatever marketing or promotion people are left and on-air talent.
Remaining big salary on-air personalities are being targeted because cutting these folks makes the most sense to Clear Channel bean counters.
Keep in mind that Clear Channel and co-parent Bain use outside help to show them how to effect cost savings. These companies are clueless about how radio stations operate. I say that because if you expect the programming cutbacks to make sense, you’re asking too much. The bean counters are bounty hunters for big salaries.
The most security goes to the programming and on-air talent that make the least money although as with the recent sales RIFs if the boss goes, the assistant goes with them.
Clear Channel is prepared to press Premiere and/or national format programs to replace local talent.
If Clear Channel fired their entire staff and left no one standing, it still would not make a dent in their almost $21 billion in debt. And you saw their smoke and mirrors refinance of debt yesterday using a Texas company to generate more cash. The Evil Empire has been burning through cash at a record pace.
One more thing about sales RIFs – they are still ongoing. The carnage continues to mount.
Let’s do the math.
Some 300 sellers were fired over the past few weeks.
If you assume that the average salary saved was $50,000 taking into account both higher salaried sales management and lower earning sales assistants, The Evil Empire saved $18 million.
That’s less than what Bob Pittman spent on his $21 million mist tunnel renovation of his New York offices.
I mean, they’re paying John Hogan millions a year on his contract and that is getting them nothing.
And I’m not even offsetting that $18 million dollar sales RIF saving with what Clear Channel lost in business because sellers were fired.
Regional call centers are sure as hell not picking up the slack.
All of this is about turning Clear Channel into a tower and transmitter company.
They are selling their tower sites.
Consolidating offices down to the minimum – who needs local studios.
And with the help of their bitch – excuse me, I mean Nielsen they will be paving the way for radio to be bought on a transactional basis – online, no people.
Media buyers want this.
And why would that be?
Because they will start bidding down radio spot prices. I want to see desperate companies like Clear Channel turn down whatever online media buyers are willing to pay in an automatic sales transaction.
Like they are going to not accept the buy.
Be careful what you wish for.
