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Westwood One cuts affect Metro Networks

5

50kguy

Details of how this will affect Phoenix yet to be announced:

Westwood One, Inc. (NYSE: WON), today announced plans to restructure the traffic operations of its subsidiary, Metro Networks. Westwood One’s streamlined traffic business will fully leverage new digital technologies, provide enhanced 24/7 traffic coverage and more efficiently align resources.

Westwood One recently expanded its U.S. roadway coverage with the integration of cellular probe technology into its traffic reports, as part of a transition to a digital platform. The shift to a digital technology platform will enable Westwood One to consolidate traffic resources from 60 operations centers into 13 regional hubs, improve service to small, medium and large markets, and alleviate demands on aerial reporting units. Comprehensive localized traffic updates will continue to be delivered to all of its current markets by a team of highly-qualified broadcast professionals. Westwood One remains committed to the traffic business and will continue to implement additional
leading edge technologies into the platform.

The modifications to the traffic business are part of a series of reengineering initiatives identified by management to improve the operating and financial performance of Westwood One in the near-term, while setting the foundation for profitable long-term growth. These changes will result in a staff reduction of a net 15 percent and the relocations of some operation centers during the fourth quarter of 2008, with the remaining markets moving into the 13 hubs by the end of the second quarter of 2009.
 
Newsperson responds:

That's just the press release. What's really happening and which offices will be closed?

Since Phoenix is a hub there are probaly safe. What about Las Vegas, San Deigo, Sacramento and others?

Newsperson
 
Here's the best part:
"...improve service to small, medium and large markets, and alleviate demands on aerial reporting units. Comprehensive localized traffic updates will continue to be delivered to all of its current markets by a team of highly-qualified broadcast professionals".
The phrase "improve service" is laughable. That means in reality: many markets won't get any reports that anything to do with their markets at all. Those that do will be at best delivered by people who have no idea how to pronounce any local street, road, highway or place names. Local listeners will be frustrated.
"Alleviate demands on aerial reporting units" means fire a bunch of people and ground any actual aerial units that may be left.
In reality the new technologies could be a super asset to local traffic reports. However, I have yet to see this implemented. Another loss for the listeners, more bonuses for the CEOs.
 
FreedDJ said:
That means in reality: many markets won't get any reports that anything to do with their markets at all. Those that do will be at best delivered by people who have no idea how to pronounce any local street, road, highway or place names. Local listeners will be frustrated.
Click to expand...

You obviously don't understand how this kind of work is done. If you're assigned to do traffic for a town, and you don't happen to live there, it's your job to become familiar with that town. The roads, the landmarks, and traffic patterns. It won't matter if your office is there or not.

Most weather forecasts come from offices located nowhere near the towns being reported. Accu-Weather is based in PA. The Weather Channel is in Atlanta. They don't have local offices with local reporters. Their coverage comes from the centralized office. Sure when they have a big storm like Ivan, they dispatch a local team to the site. But for the most part, all their reporting comes from the home office.

I know a lot of DJs who have worked in 20 different towns during their career. They come into a town, and don't know squat about street names or traffic patterns. But it's their job to find out, and they learn or get fired.

FreedDJ said:
Another loss for the listeners, more bonuses for the CEOs.
Click to expand...

Based on the current stock price, I doubt it has to do with bonuses for a CEO. It's more about survival. This company lost $100 million last QUARTER. That's almost a half billion in a year. Obviously the way they're doing business is inefficient, and having all those local offices hasn't helped them plug the money hole. I would bet their first choice was to sell the whole operation, but who would buy it?
 
They had some pretty deep cuts here in Nashville. Two friends were employed there- one was let go, one kept his job, at least for now.
 
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