CC Media Holdings Inc., parent of Texas-based Clear Channel Communications Inc., said it has eliminated about 1,850 full-time jobs, or 9 percent of its total work force, in an effort to cut costs.
In Hartford, Clear Channel operates radio stations ESPN 1410, 105.9 The River, Country 92.5, FM 104.1 and Kiss 95.7. The company declined to say how many Hartford employees are affected.
CC Media Holdings, which also owns Clear Channel Outdoor Holdings Inc., said in a filing with the Securities and Exchange Commission that the move will lower fixed costs by about $350 million a year.
The job reductions and other actions taken as part of the restructuring program, including getting rid of overlapping functions, will lead to one-time charges of approximately $200 million. CC Media cautioned that it may have to take additional charges as the program develops.
About 40 percent of the charges and cost savings are expected at Clear Channel Outdoor.
The company’s cost saving measures are expected to be in place by the end of the 2010 first quarter, according to the filing.
In addition, Clear Channel Outdoor Chief Executive Mark Mays and Chief Financial Officer Randall Mays have agreed to pay cuts that will bring their 2009 base salaries to $500,000 and a minimum base salary of $1 million in following years.
In November, San Antonio, Texas-based Clear Channel Outdoor reported that its third-quarter profit plunged 83 percent and said that the global economic slowdown had hurt advertising revenue across its business in recent months. (AP)
