It Was A 7% Workforce Cut At Cumulus
February 13, 2009 at 12:07 PM (PT)
ALL ACCESS has covered the layoffs at individual CUMULUS clusters over the past week, and now THE ATLANTA BUSINESS CHRONICLE reports CUMULUS MEDIA INC has trimmed up to 259 employees in its various media markets.
The company said it cut up to 7% of its workforce of 3,700.
CUMULUS CEO LEW DICKEY told ALL ACCESS, "As you know, these are difficult times for ad-supported media companies which are basically high-fixed cost businesses. Virtually all of these companies are being forced to realign their costs with this new revenue environment. Much of this is driven by the capital structures that were supported by significantly higher levels of revenue and operating cash flow.
"I believe very strongly in the long term prospects for our industry, but we are all in the position of having to make difficult decisions in the short run to navigate our industry through this unprecedented economic cycle."
DICKEY said the company is looking at each business unit on a market-by-market basis. "Some markets had more room to go than others. It is our hope that markets will return and we can rehire some of these positions, but in this current operating environment we have to be very prudent."
CUMULUS is the second-largest radio company in the UNITED STATES based on station count. It owns or operates 339 radio stations in 65 U.S. media markets.