Entercom Announces Layoff, Furloughs, Pay Cuts
• In what is rapidly becoming the sad new reality of our industry, Entercom has become the latest broadcast company to announce serious cost-cutting measures — a “significant number” of layoffs, furloughed employees and salary reductions — the byproduct of the drastic worldwide economic crisis caused by the COVID-19 pandemic.
In a staff memo, obtained by RAMP, Entercom Chairman, Pres. & CEO David Field (pictured), said, in part, “Unfortunately, the severity of the situation necessitates us making significant cost reductions in order to cope with the realities at hand. Our nation is facing unprecedented disruption that has shut down countless businesses and entire industries, including many of our customers. This is having a very large impact on advertising revenues. We must take hard but necessary actions to ensure that we endure the crisis and emerge as a strong, healthy and competitive company.”
Field’s memo continued, “I am deeply saddened that we need to make these painful moves at this time, but they are necessary under the circumstances. We are doing everything in our power to minimize the number of layoffs through shared sacrifice across the organization, but we will still need to eliminate or furlough a significant number of positions. In order to make the transition less painful for our colleagues, we will be providing up to an extra month of additional severance for those individuals for whom their normal severance and the recently announced enhanced federal unemployment benefits provide less support. In addition, we will be providing enhanced employee benefits for furloughed team members.
“We will also be taking other cost reduction actions at this time, including the temporary suspension of our dividend and our 401(k) Company match, the elimination of Q1 and Q2 bonuses, and temporary salary reductions of between 10% and 20% for anyone earning a salary in excess of $50,000 per year. I will be taking a 30% salary reduction. We hope to restore regular salaries, bonus eligibility and our 401(k) plan match at the start of the third quarter.” In conclusion, Field said, “I very much appreciate the sacrifice that people will be making in these difficult times. We will get through this crisis and put this all behind us. Better days lie ahead. With the tough but necessary actions we are now taking, we are doing what is required for us to preserve the health of the company and ensure that we are strong when we get to the other side.”
• Entercom has not specified the number of employees who will be adversely affected by these layoffs and furloughs. If you are one of those displaced professionals and would like to get your name and contact information out to the industry, please email Kevin@RAMP247.com.
