In a videotaped message to employees Tuesday Cumulus CEO Mary Berner implemented a salary-slashing plan for the company that she said “was not easy but necessary.” She called it a COVID-19 people plan and said it was temporary. Here are the details that will be rolled out into Cumulus markets in the coming days.
Over 80% – the vast majority – of Cumulus’ salaried employees will be taking 3 individual weeks of furlough. That’s unpaid leave where they cannot do any work. Those three weeks will be taken in one week installments over a 15-week period beginning April 20th.
Two additional groups will be affected as well. First is a number of people in positions which can’t be covered by others during their absence. People Cumulus depends on for financial controls or those who don’t have someone above them or in their department who can cover for them. The people in this group will be asked to take a 90 day pay cut effective April 16th while they remain in their jobs and work them for those 90 days.
The second group of people are employees whose job functions or responsibilities have been greatly reduced or eliminated entirely as a result of the COVID 19 impact. These employees will be put on a straight 90 day furlough effective April 16.
Other changes, that were not specified in the video, will be implemented on non salaried commissioned salespeople.
Berner did not say how many Cumulus employees will be put out on a 90-day furlough. She did say the company has “every intention” of bringing them back when normal business operations resume. “Even Though these are intended to be temporary actions, I know they are going to land hard, really hard and that is in the emotional and financial toll that a furlough or salary cut will take on each of you, but also in terms of the increased workload the vast majority of you will have to take on during your co-workers furlough weeks. I am truly sorry and sad about this announcement. None of you deserves this.”