iHeartMedia, Inc. today announced certain proactive initiatives in response to the currently weak advertising environment resulting from concerns about the economy.
iHeartMedia Chairman/CEO Bob Pittman and President/CFO/COO Rich Bressler issued a staff memo today which outlines a round of cost savings tactics. Among the cost-saving initiatives a temporary suspension of 401(k) match starting next pay period and a hiring freeze for non-critical mission roles. The plan will be in effect for the foreseeable future until the advertising marketplace improves.
Here is the memo to staff:
Team,
Although we’ve made great strides in our business and have built a leadership position across all audio platforms thanks to your extraordinary efforts, we are not immune from the headwinds caused by the economic pressures we read about in the headlines every day — and that is forcing us to make tough choices on costs and priorities.
Our goal is to do everything we can to get through this difficult economic time while protecting our employee base as much as possible. Therefore, we’ll be implementing the following necessary cost savings:
• Temporarily suspending the 401(k) match starting in your next pay period and for future months until the advertising marketplace improves. Please note that any contributions made so far this year will not be affected.
• We will only be backfilling mission critical roles.
• Stopping or reducing all discretionary spending, including non-essential T&E, overtime, outside vendor spend, temporary contractors, etc.
These measures are part of our proactive plan to keep our company healthy in the slowdown and to be fully ready for an economic recovery.
We appreciate your commitment to iHeart, to our communities and to our partners, and we are confident we will successfully navigate through this period and be well-positioned for growth when the economic pressures subside.
Bob and Rich
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