Townsquare Media & iHeartMedia Detail Cost-Cutting Measures And Related Cuts

[Y2kTheNewOldies]

https://radioinsight.com/headlines/...oinsight_daily_2020_03_30&utm_term=2020-03-30

These Cuts are being announced at the same time as Alpha Media has announced cuts due to the COVID-19 fallout.

As the coronavirus pandemic continues to harm the economy both iHeartMedia and Townsquare Media have implemented measures to cut costs and trim some of their operations.

In a memo to employees, Townsquare CEO Bill Wilson announced that the company has laid off 65 employees including 26 at the corporate level on top of the series of cuts the company made at some of its markets over the past two weeks. It is also suspending its 401K matching program and announced that eighteen executives will take a 10% reduction in their pay.

 

[Y2kTheNewOldies]

https://www.allaccess.com/net-news/...-ardolina-exits-townsquare-media-new-jersey-p

Update Steve Ardolina has been named as one of the Townsquare people removed due to cuts.


https://www.allaccess.com/net-news/...tmedia-announces-90-day-furloughs-for-some-em

Iheart is facing furloughs for some of the staff members.

 

[Y2kTheNewOldies]

https://news.****************/articles/n38502/Report-More-Than-30-Staffers-Furloughed-at-iHM-Chicago

30 Iheart staff members have been Furloughed in Chicago.

More than 30 full-time and part-time employees were placed on temporary unpaid leave this week at iHeartMedia Chicago in response to the economic downturn triggered by the coronavirus pandemic reports Chicago media columnist Robert Feder (pictured). Sources tell him that staffers in every department were affected by 90-day furloughs ordered throughout the company. Officials of iHeartMedia Chicago did not respond to Feder's requests for comment.

 

[Y2kTheNewOldies]

https://news.****************/artic...untarily-Agreed-to-Forgo-Certain-Compensation

Here is more

 

[xmtrland]

With Adams and Busto shutting down AM's is it possible iHeart could shut down the stations in the trusts as a cost cutting measure? Since these stations are basically running out of a suitcase there would be little labor saved but expense for electricity for the transmitter would be saved.

Is it possible Entercom, iHeart and other large groups shut down AM's that are not really cost effective but clear spots in the market without impacting national advertising reach. It would also save electric cost but I would suspect they would still have to pay rent unless they abandon transmitters and equipment along with the license (turn it in).

If a bunch of STA request start to hit the FCC that would be an indicator.

 

[Y2kTheNewOldies]

https://radioinsight.com/headlines/...tails-covid-19-related-financial-initiatives/

iHeartMedia has further detailed a series of business initiatives they initiated last month to explain to shareholders its plan to remain viable during the current advertising collapse.

Among these initiatives are the previously announced furloughs, suspension of the 401(k) matching program and reductions of executive salaries. Others that went into place include suspension of new employee hiring, reductions in travel and entertainment expenses and reducing consultant fees and other discretionary expenses.

Here is how Iheart is responding to the COVID-19 crisis.

 

[Kelly A]

Is it possible Entercom, iHeart and other large groups shut down AM's that are not really cost effective but clear spots in the market without impacting national advertising reach. It would also save electric cost but I would suspect they would still have to pay rent unless they abandon transmitters and equipment along with the license (turn it in).

Guess it depends on how long this pandemic continues to effect the economy. Concerns over utility costs would probably come at a later date. When that time comes, you know broadcast companies are starting to overturn sofa cushions looking for what amounts to spare change. Capital expense, FTE salaries, benefits, travel, and rent are always the first line of cuts.

In spite of being AM licenses and diminished value, those stations are still on the books as assets. Throwing away assets that a company like iHeart still has on the books as debt, would not be a good idea for a company of that size. Now, if the company received an offer for the land that an AM TX site was on, and determined the value of that land sale was more than the diminished value of the AM license? That would be valid justification for turning in the license. In your particular case Steve, the land on Vashon probably isn't that sought after by industry or developers...yet.

 

[Y2kTheNewOldies]

https://radioinsight.com/headlines/...ks-of-unpaid-vacation-for-salaried-employees/

Update Iheart has issued another response to the COVID-19 issue.

As part of its efforts to prevent additional layoffs during the COVID-19 pandemic, iHeartMedia has told employees today that they will require two weeks of unpaid vacation for employees of certain criteria.

Any salaried employee who makes $50,000 per year in base compensation (excluding bonuses, overtime or commissions) that has not taken a salary reduction of 5% of more, will be required to take two weeks of unpaid vacation. The weeks will be spread with one taking place between now and June 30 and the second week between July 1 and September 30. The company says the weeks are equivalent to a 4% salary reduction for the year and must be scheduled with local management to ensure proper staffing remains working

 

[Kelly A]

Update Iheart has issued another response to the COVID-19 issue.

$50,000 annual salary seems to be the threshold with several industries, not just radio. The hospital where my wife works has announced that everyone in administration and finance making more than $50K, will be taking a 10% pay cut beginning next pay period, and all 401K company contributions are being suspended. Similar to what iHeart is announcing, the next step will be rotating two week LWOP.

The large Network that I'm employed hasn't started cuts yet, but I'm confident something similar is brewing.

Best hold on to something folks, this is just getting started.