When revenue falls off the cliff, adjustments need to be made to survive. When a pandemic is the reason, companies are forced to find new ways to operate. Those new ways of operating may become permanent ways of operating.
Entercom CEO David Field spoke about several examples of changes becoming permanent on his Q2 earnings call. “For example, we have substantially reduced the staffing and scope of our in house promotions departments, and will be discontinuing some of the legacy promotional practices which have diminishing value, given the rapid evolution of our digital, social and other technological capabilities in recent years.”
Field also said the company will be significantly reducing the size of its office and studio facilities. “We have learned during recent months that we can operate at a highly effective level with modified work practices and reduced workspaces.”
Entercom spent about $70 million on office rent and occupancy costs in 2019. Field says improvements in those two areas will “significantly enhance our organizational effectiveness and financial performance going forward.”