Beasley Extends Wage Cuts And Furloughs

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The COVID-19 related struggles continue for radio companies. As some states move quicker than others to open their economies back up, radio companies with clusters spread across the country also have to deal with slower moving states, which means a longer wait for advertisers to ramp up and spend money.

Back in April Beasley Media Group cut 67 jobs, announced furloughs and pay cuts, much like the rest of the industry. The April plan was set to expire at the end of June. However, as of yesterday, in a company-wide memo, CEO Caroline Beasley announced that the plan will now extend through the end of 2020. “No one could have ever anticipated that several of our markets would not begin the first phase of the reopening process until June. As a result, we must continue to adapt to the new financial environment we are facing within each of our individual markets.”

Beasley said performance based bonuses for Q3 and Q4 will be reduced, the 10% wage cuts will be extended for salaried full-time employees as well as the 10% reduction in hours for full-time hourly employees. “These cuts will be effective through December 31, 2020, respecting any outstanding contractual obligations. In addition, the company will be extending furloughs until the end of the year. Some employees may return sooner, based upon the needs of the company on a market to market basis. I will also personally continue to forego 20% of my compensation until the end of the year.”

Most radio companies have been indicating that April was the bottom for this crisis. They’ve said May looks better than April and June was looking better than May. However the revenue hit, despite that good news, have been huge. At some companies revenue is down 50%.

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