Clear Channel Cost Savings Could Continue Into 2010
March 3, 2009 at 10:12 AM (PT)
On JANUARY 20th, 2009 the Company announced that it had commenced a restructuring program targeting a reduction of fixed costs by approximately $350 million on an annualized basis. As part of the program, the Company eliminated approximately 1,850 full-time positions representing approximately 9% of total workforce. The restructuring program will also include other actions, including elimination of overlapping functions and other cost savings initiatives. The program is expected to result in restructuring and other non-recurring charges of approximately $200 million, although additional costs may be incurred as the program evolves. The cost savings initiatives are expected to be fully implemented by the end of the first quarter of 2010. No assurance can be given that the restructuring program will be successful or will achieve the anticipated cost savings in the timeframe expected or at all. In addition, the Company may modify or terminate the restructuring program in response to economic conditions or otherwise.
So far, nothing to indicate this means another massive job action similar to the JANUARY 20th layoffs, or the wrongly rumored FEBRUARY 20th layoff. But, it does leave the door open for continued adjustments, especially after the new team of up to 40 Revenue Managers make their asessments -- and let's not forget the health of the economy will play a role.
The restructuring program will also include other actions, including elimination of overlapping functions and other cost savings initiatives.