That means the music changes didn't help with the aging demo problem. If so, then the only solution is to keep cutting expenses, because income won't improve. In some markets, it's possible that the classic hits format itself will disappear if the music can't be adjusted to reach the sales demos.
The classic hits format will disappear, to be replaced by what? People who grew up embracing radio before streaming took over are getting older. People who grew up in the internet age don't even touch radio. So the remaining radio audience in the "sales demos" is getting smaller, that's all there is to it. There are still lots of loyal radio listeners left but they're all approaching...or already over...age 55, when they're treated as worthless.
Broadcasters can change the music or the format all they want, but unless they revolutionize things in ways not currently being tried, it won't change the age of radio listeners. So they keep laying off all the talent and doubling down on intolerably long sets of the lowest quality commercials, which makes the content exponentially worse, driving away everyone regardless of age.
IMO the business model has to change. Change to what, I don't know, but this obsession with a young audience doesn't have a future. They're not coming back to OTA radio, and they're not going to put up with the current commercial loads on streaming radio. Some of the biggest radio industry leaders are in their 60s and 70s, well out of the target demos themselves, and I think they're happy to ride this train to the end of the line and cash out when the time comes without too much concern for what comes after that.