Clear Channel Axe To Fall

[The Interpreter]

...The Wall Street Journal also cited the $400 million number and said Clear Channel would cut 7% of its staff, some 1,500 employees, mostly in sales. The WSJ also said CC Radio “is likely to eliminate chunks of local programming and replace it with national programming.” In sales, it said lesser-performing salespeople will be let go and their accounts given to the best salespeople so they can maximize their compensation.

...But if the rumors are correct that CC Radio is cutting its sales force and substituting national formats for local programming, it could create wonderful opportunities for its local radio competitors.

CC Radio is already understaffed on the sales side, with many AEs carrying a much longer client list than they can service well. Giving top-performing AEs even longer lists by firing poor performers won’t add any hours to the day for those over-extended really good AEs to do more work.

Meanwhile, it should be pretty easy for PDs at competing local stations to outmaneuver nationally-produced formats in top music genres. Radio is, after all, a local medium.

The likely outcome for TH Lee Partners and Bain Capital as the new owners of Clear Channel? Lower ratings and lower revenues. Are these smart guys or what?

PS: After Clear Channel do not be surprised to see a few others that are in deep trouble ride the coat tails of Clear Channel to do their pink slipping as the attention is being paid to the big dog. RBR hears that Citadel is going to slice and dice big time.

more at:

http://www.rbr.com/radio/12370.html

[Cameron]

THE NEW YORK POST reported FRIDAY (NET NEWS 1/16) that a major restructuring at CLEAR CHANNEL would begin on TUESDAY (1/20), with a plan that seeks to cut $400 million in costs to be unveiled.

Over the weekend, THE WALL STREET JOURNAL (1/17) adds to that reports, writing that "CLEAR CHANNEL plans to lay off about 7% of its U.S. staff and replace more local shows with syndicated content, moves that could affect the broader radio and outdoor-advertising businesses for years to come."

The WSJ story continues: "TUESDAY, CLEAR CHANNEL will lay off about 1,500 employees, mostly in ad sales, and implement other cuts aimed at saving close to $400 million, according to a person familiar with the situation.

"The cuts will help CLEAR CHANNEL 'catch up' with other radio companies, which have engaged in layoffs and other cost cuts since early last year. CLEAR CHANNEL's restructuring lagged behind competitors thanks largely to an 18-month battle to take the company private, a process that ended in JULY 2008.

"But other radio and outdoor-ad companies could end up embracing certain strategic elements of CLEAR CHANNEL's restructuring if they see it finds success.

"On the radio side, the company is likely to eliminate chunks of local programming and replace it with national programming, much as it has brought RYAN SEACREST's LOS ANGELES-based radio show to other markets in recent months. If a local show seems successful, the company will try to syndicate it faster than it might have in the past, a person familiar with the situation said.

"The bulk of CLEAR CHANNEL's job cuts will be in sales, dropping those who aren't top performers. 'The focus is on rewarding the very best salespeople, and letting them maximize their own compensation,' in part by picking up accounts from their less-stellar peers, this person said.

[genlock]

"Yes, We Can!"

[Hoosier Daddy]

"Yes, We Must!"

[genlock]

Nacht der langen Messer

[CH107WITO]

Word "on the street" has it that Rob Kimball from X106.3 is the first to go from ClearChannel-Huntington. It is reported that Rob said while he is the first to go, he is certainly not the last, as the market manager--Judy Cornett--has a stack of envelopes to pass out at 134 Fourth Avenue.

This is a horrible sign of the times. My best goes out to those CC employees impacted by the nation's economy.

[Big Media]

Indeed. I hope Rob and the rest of the axees will be inclined to join and discuss.

It is truly a sad day.

[Lester]

This is a horrible sign of the times. My best goes out to those CC employees impacted by the nation's economy.

I disagree. This hammer was going to fall regardless of the economy. This has been talked for quite some time.

[genlock]

Indeed, with this shaping up as a corporate-wide lay-off situation,
the lay-offs are by position and not by personality. There may be a very few where
the manager has a real input as to which job is lost.

[CH107WITO]

This is a horrible sign of the times. My best goes out to those CC employees impacted by the nation's economy.

I disagree. This hammer was going to fall regardless of the economy. This has been talked for quite some time.

And your perception of the real reason(s) is what? I'm very interested in that. There are NUMEROUS credible articles that state that when the economy takes a nose-dive, people who make advertising decisions for their businesses/organizations spend less to advertise their products/services. Thus media outlets must make cuts in personnel to offset this reduction in ad revenue.

With that said, what is the "real" reason, Lester? Do enlighten us!

[genlock]

When Clear-Channel went from a publicly traded company to a private ownership,
a large amount of money switched hands and much debt created. This happens
any time a station is sold and unless the station is bought from an unusually crappy
owner, the situation never gets better. Clear-Channel has been looking to unload
stations for some time. Their valuation of those stations made it impossible for
anyone responsible to buy them even before the credit crisis began. The cuts may
be deeper now than before the economic downturn, but they were on the way nevertheless.
The cuts may not be over with today's series of lay-offs.

[Swing'n Dick]

And your perception of the real reason(s) is what? I'm very interested in that. There are NUMEROUS credible articles that state that when the economy takes a nose-dive, people who make advertising decisions for their businesses/organizations spend less to advertise their products/services. Thus media outlets must make cuts in personnel to offset this reduction in ad revenue.

With that said, what is the "real" reason, Lester? Do enlighten us!

Looks like someone is relatively new to radio. Welcome to whats left of it. CC is a shady, greedy, clusterfuck of an opperation. And if you paid attention in your Broadcast History class (if you even went to school for broadcasting), you would have know that CC dropped the axe on 50% of radio employee's in the late 90's. But it's very nice of you to defend them.

[Arp2]

This is a horrible sign of the times. My best goes out to those CC employees impacted by the nation's economy.

I disagree. This hammer was going to fall regardless of the economy. This has been talked for quite some time.

And your perception of the real reason(s) is what? I'm very interested in that. There are NUMEROUS credible articles that state that when the economy takes a nose-dive, people who make advertising decisions for their businesses/organizations spend less to advertise their products/services. Thus media outlets must make cuts in personnel to offset this reduction in ad revenue.

With that said, what is the "real" reason, Lester? Do enlighten us!

This is interesting....so many flawed assumptions, so little time. It shows the importance of having truthful and accurate basic paradigms and why we face so many challenges going forward.

The real world is not a term paper or dissertation...."NUMEROUS credible articles" are not footnotes that make an assertion or belief truthful, accurate, or complete. "People cut back advertising in times when people are less willing to spend" is generally true but, especially in this situation, is far too incomplete to accurately tell the story. To understand this situation, you'll want to understand how companies -- especially private equity companies, et al -- try to make their money back, increase cashflow, and/or increase value with the businesses they buy and then (and only then) add in an advertising slowdown.

Lester's right, but there needs to be one possible correction made to Genlock's observation -- we'd have to check to be sure, but it's quite possible no debt was created in the acquisition of CCU. Lee & Bain, being private equity companies, probably had the money -- from investors, not debt -- sitting around waiting to be used on something. Now, that money has to go back to investors at some point, but it's not "debt."

[Bar Rat]

Any word of casualties on Radio Mountain?

[Uncle Shishkabob]

Any word on the Wheeling cluster?

[The Interpreter]

Oh, my. Based on this, I bet the WV cuts may also be extensive:

Clear Channel Cuts Begin

January 20, 2009

R-Dub! exits the PD post at Rhythmic AC KHHT/Los Angeles. Also at Clear Channel-L.A., Hot AC KBIG OM/PD "Chachi" Dave Denes" exits. And Mitchel Baldwin exits Promotions at Modern Rock KYSR/Los Angeles as well.

Diego Ramos exits Clear Channel Top 40 WIOQ (Q102)/Philadelphia. Ramos has been a morning fixture in the City of Brothey Love for 18 years and he was most recently the local link of the syndicated Elvis Duran Morning Show. Reach him at DiegoRamos1120@aol.com.

In Dallas, Hot AC KDMX MD/midday host Lisa Thomas exits.

"Niko" Nicholaus Petrou exits WHTZ (Z100)/New York. Niko had been nights/producer/weekends/overnights in his time at Z100.

At Clear Channel's Miami cluster, Programming Assistant/on-air host Victor Lambert exits after five years.

Jamillah Muhammad exits as OM of Urban WMXD/Detroit.

Dave Osborne, PD for Clear Channel-Portland Online, departs after a thirteen year run with the company.

At Clear Channel-Atlanta, Imaging Director Adam Schneider exits. He oversaw imaging for WJLS (Project 9-6-1) and WUBL.

Eric "Boney" Clouse exits as MD of Modern Rock KTCL/Denver & Rhythmic AC KPTT. Also at CC-Denver, Active Rock KBPI MD Aaron "Double A" Montell exits as well.

Abbey Still exits as MD of Active Rock KFNK/Seattle.

Rob Wagman exits as PD of WIBT (96.1 The Beat)/Charlotte, along with Promotions Director Sarah Lee Owensby.

In Tampa, Joey B. exits as producer of WFLZ's MJ Morning Show. Part-timer Eggz is out as well.

Top 40 WRVQ (Q94)/Richmond PD Boomer exits.

Bill May exits the Clear Channel-Albuquerque cluster, where he was OM of five stations. Also in Albuquerque, KSYU/KTEG Promotions Director Teliece Garcia exits.

Gabe Hobbs, SVP of Programming for News/Talk/Sports for the Clear Channel Tampa cluster exits. His position was eliminated. Hobbs was with the company for 25 years.

At Clear Channel-Charleston, Production Director Peter Kaufman exits after two years.

Lous Kaplan exits as OM of Clear Channel's Ft. Myers, FL cluster.

Production Director Phil Brown is out at Clear Channel's Dayton cluster after 15 years.

Top 40 WKCI/New Haven PD/morning host Chaz Kelly exits.

Ryan Kennedy, Director of Marketing & Promotions for Clear Channel's Delaware cluster, exits.

Michael Capozzoli exits as National Director of Affiliate Relations for Premiere Radio Networks.

Brad Fuhr, Director of PrideRadio.com exits CC as well.

http://www.fmqb.com/Article.asp?id=1117164

[Cameron]

Some of the information I'm getting indicates that today is, by-far, NOT the end of the layoffs @ CC.

Everyone,

As I've mentioned previously, we are facing an unprecedented time of distress in the general economy -- and the ripple effects have hit some of our largest customers hard.

Today, we had the unpleasant task of bringing our Outdoor and Radio businesses' staffing in line with these challenging economic conditions. In doing so, we enter 2009 as a solid company and in the most competitive position possible.

We have thought carefully and at some length about the steps we need to take as a company to succeed during this unprecedented downturn. As a result, we have eliminated approximately 1,850 positions across Corporate, Outdoor and Radio. While a significant portion of these positions represent realignment in our sales departments, the positions span all departments and represent approximately 9% of the total Clear Channel Communications workforce.

One of the things that has kept Clear Channel strong throughout our history is a willingness to deal with difficult situations in an immediate way -- to make the tough decisions today in order to secure a strong future. It is this trait that has gone furthest in enabling us to weather many difficult downturns in our 37-year history. It always requires clarity, collaboration and courage.

Please know that these have been difficult decisions -- yet necessary ones. We will miss those who are departing -- even as we renew our shared commitment to success among all of us who will stay.

Everyone in our investor group, on the Board, and in the executive leadership team remains bullish about the long-term growth prospects for Clear Channel. We continue to believe that the Outdoor and Radio businesses offer excellent opportunities.

We need to remain highly entrepreneurial and innovative. We also need to remain focused and compassionate. If we continue to manage our business carefully, and invest with discipline in the right strategic opportunities, we will navigate this downturn effectively and emerge even stronger and better positioned when things improve.

Starting now, it is our ability to bring creative thinking to the current business climate - to focus on the benefits we deliver for customers - to show extreme focus and commitment -- that will create results.

Clear Channel Communications has more resources than any of our peers. The tools are here. The support is here. It's time to use them to create lasting competitive advantage for our customers -- and for our company.

Please know that we continue to be extraordinarily appreciative of all of the passion and hard work that each of you continues to commit to this phenomenal business. We will get through this together.

We're in this together. We have the best team. And we all have important work to do.

As we head into the New Year, I know we will meet the oncoming challenges with focus, determination and grace.

Please let me or your management team know if you have any questions.

With Regards,
Mark Mays



The following is the text of Hogan's letter:



Hello,


Today has been a difficult day companywide as we addressed the economic realities affecting our country and many other companies. While separating from colleagues is personally difficult, the changes we have made were carefully considered and are necessary and prudent business decisions.


We are choosing to change as the environment around us changes and will begin work today on re-engineering our operations to successfully compete today, tomorrow and in the future. The challenges will be many -- we continue to see softness in the advertising market; we continue to compete with all forms of media for both audience and advertising dollars; and we continue to have to do both in a way that's smarter, faster and more effective.


But, there are three very important things that we have going for us. Clear Channel Radio has the resources, the will and the plan to compete going forward. Our deep bench of talent and intellectual capital will drive Clear Channel Radio through this downturn and ensure our ability to emerge from it faster, stronger and better than ever.


In recessions, there is a flight to quality by advertisers, and Clear Channel Radio offers the highest quality by any measure.


-- Radio continues to have the largest, most desirable audience of any media. Better than broadcast television. Better than cable. Better than newspapers. Clear Channel Radio operates more top-ranked stations and digital sites in our local markets than any other broadcaster. We have the top syndicated talent on the air and online in our Premiere Radio Networks company.


-- Clear Channel Radio also continues to have the most desirable digital properties in the country. From our streaming broadcasts to our on-demand content to our mobile applications like iheartradio, our brands are gaining audience daily in the most coveted demographics and platforms.


-- Clear Channel Radio, in partnership with our Premiere Radio Networks and Katz Media Group colleagues, is part of the world's largest and most effective radio advertising network by any measure.


Recessions also favor the forms of marketing and advertising that give the highest return on investment. We clearly have the opportunity to take market share away from broadcast television, cable and newspapers in this economy.


As we move forward, please know that you have the support and commitment of everyone on the Clear Channel Radio management team. We have the best resources of any radio company – and we have the will to win. Please join me for an important all-staff webinar on Wednesday morning for which your Market Manager will provide details.


Thank you for your efforts and support.


John Hogan
Pres. & CEO

[genlock]

How many employees in the Huntington cluster of C-C? FT/PT?

[The Interpreter]

I am also hearing MAJOR format changes are coming to many markets, the better to make national similarities and what the British call rationalization and redundancies....

For example, local sports shows out at Detroit's WDFN:

http://www.detnews.com/apps/pbcs.dll/ar ... 0419&imw=Y

[genlock]

Smaller markets will sustain higher losses than HQ and larger(money making) markets.
Can't cut legal and accounting at HQ and higher rated shows in big markets.
Someone will have to do the nationwide voice tracking.
Managers in Texas.
All spells higher cuts locally.