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Thread: The Entercom Axe Falls On Chicago

  1. #1

    The Entercom Axe Falls On Chicago

    Mass layoffs at Entercom Chicago (All Access).
    Story says more will be coming as the Entercom stock value plummets. Last man standing can unplug and go home...

  2. #2

  3. #3
    So the article says 8 people, none of which are on air. That cluster has over a hundred employees in that office. It's nice that they're getting recognized, but I've been noticing the company has been letting people go in just about every market. Some of them are on air. So yes the stock value is going down, but staffing isn't a function of stock value. It's about the crossroads between expenses and revenues. If expenses go up, and revenues stay stable, you have to let some people go. And there's no question that expenses are going up.

    This is a company that has a lot of back office people, and a lot of infrastructure that's still built around a radio-TV cluster that has been broken up. There are economies of scale that were promised to stockholders in the merger that haven't taken place. This should begin the process of economization.

  4. #4
    That's weird.. Considering that Entercom does fairly well in that market. They don't have any outstanding debt, do they?

  5. #5
    Quote Originally Posted by aj_ View Post
    That's weird.. Considering that Entercom does fairly well in that market. They don't have any outstanding debt, do they?
    From what I can see, long term debt is about $1.8 billion. Entercom Communications debt/equity for the three months ending March 31, 2019 was 1.48 .

  6. #6
    Whenever I hear about a big employer laying off a large number of people, I wonder why they had that many people to lay off in the first place. If your traffic and billing office can reduce its number by seven, why was the staffing so large in the first place?

    I certainly don't want to kick someone as they are losing a job. It's really tough. And I sometimes think big corporations are mean because the executives know a big layoff will often goose the stock price.

    But why was the Entercom/CBS support staff so large in the first place? I've never worked in a company where there were seven people in the office, let alone one where the company could lay off seven people and still have enough people to send out the bills and handle the commercial logs. Maybe presidential candidate Andrew Yang is right. In the next decade, automation and technology will not just displace plenty of factory workers, but many others... bus, taxi and truck drivers, bookkeepers, X-ray technicians, etc. Maybe one or two people in the front office of a radio cluster of seven stations will be able to do all the work needed?

  7. #7
    Quote Originally Posted by Gregg. View Post
    Whenever I hear about a big employer laying off a large number of people, I wonder why they had that many people to lay off in the first place. If your traffic and billing office can reduce its number by seven, why was the staffing so large in the first place?
    I think I explained it in my previous post: Entercom bought the radio division of a multi-media company. They inherited the employees that came with that. When it was owned by CBS, those employees weren't identified as radio only. They worked for CBS. Entercom came in, and determined the company was overstaffed, compared to their levels. Beasley determined the exact same thing when they bought some CBS stations several years ago. One company staffs a certain way, another company staffs differently.

  8. #8
    Quote Originally Posted by TheBigA View Post
    Quote Originally Posted by Gregg. View Post
    Whenever I hear about a big employer laying off a large number of people, I wonder why they had that many people to lay off in the first place. If your traffic and billing office can reduce its number by seven, why was the staffing so large in the first place?
    I think I explained it in my previous post: Entercom bought the radio division of a multi-media company. They inherited the employees that came with that. When it was owned by CBS, those employees weren't identified as radio only. They worked for CBS. Entercom came in, and determined the company was overstaffed, compared to their levels. Beasley determined the exact same thing when they bought some CBS stations several years ago. One company staffs a certain way, another company staffs differently.
    Empire-building can occur at a large company. Thus, positions deemed important at CBS may be considered cruft at Entercom.
    Plugged into the electric radio

  9. #9
    Honestly, this is no different than any of the other Entercom properties. Since the merger with CBS, ETM has been trimming office staff in various ways. Billing is being done at a central location; bills sent out and checks coming in. Sales assistants are being cut, digital is also being centralized. It's company-wide, not just Chicago. If I read the Chicago thing right, at this point, no on air staff has been cut.

  10. #10
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    Quote Originally Posted by AMRocks View Post
    Honestly, this is no different than any of the other Entercom properties. Since the merger with CBS, ETM has been trimming office staff in various ways. Billing is being done at a central location; bills sent out and checks coming in. Sales assistants are being cut, digital is also being centralized. It's company-wide, not just Chicago. If I read the Chicago thing right, at this point, no on air staff has been cut.
    Yes. Entercom, like many larger broadcasters, does traffic, continuity, A/P, A/R, billing, collections and the like at central locations. It's efficient because those bottlenecks we have all experienced when one traffic person is out sick or on vacation or leave can be spread across a larger staffed central location where responsibilities for single stations and clusters are spread across a whole team of people.

    Many groups are centralizing production, too.
    www.americanradiohistory.com
    Broadcasting Magazine and Yearbooks, Billboard, Cash Box, R&R, Record World, Music & Media, Audio, Television/Radio Age, R&R, Duncan's American Radio, Popular Electronics, Studio Sound, Broadcast Engineering, db, and more.

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