Last week, we reported on US radio, live and streaming group iHeartMedia withdrawing its financial guidance for 2020 and drawing on $350m of a pre-agreed credit facility to tide it through the coronavirus pandemic. However, yesterday there were some more developments.
Radio industry site RAMP got its hands on an internal memo revealing a range of cost-cutting measures to avoid “permanent layoffs”. Unfortunately for some staff, that still means three-month temporary layoffs – ‘furloughs’ – for some jobs that are “not essential until our business operations revert back to usual”.
The company stressed this though: “This is not a layoff or a reduction in force (RIF). With a furlough, while it is an unpaid leave of absence, the affected employees stay in our employ, allowing us to continue offering these employees full health benefits, and we want to make sure we take care of them as best we can during this time.”
Chairman and CEO Bob Pittman will be taking no salary or bonus over the rest of 2020, while the rest of his senior management team will be taking pay cuts of between 30% and 70% of their salaries this year.