Posted by chicagomedia.org on September 12, 2008 at 13:46:40:
In Reply to: More insight: layoffs coming to Metro/Shadow Networks posted by chicagomedia.org on September 05, 2008 at 07:34:07:
Westwood One Reengineers Metro Networks and Other Operations
Realigns business to deliver enhanced services
NEW YORK-- Westwood One, Inc., today announced plans to restructure the traffic operations of its subsidiary, Metro Networks. Westwood One's streamlined traffic business will fully leverage new digital technologies, provide enhanced 24/7 traffic coverage and more efficiently align resources.
Westwood One recently expanded its U.S. roadway coverage with the integration of cellular probe technology into its traffic reports, as part of a transition to a digital platform. The shift to a digital technology platform will enable Westwood One to consolidate traffic resources from 60 operations centers into 13 regional hubs, improve service to small, medium and large markets, and alleviate demands on aerial reporting units. Comprehensive localized traffic updates will continue to be delivered to all of its current markets by a team of highly-qualified broadcast professionals. Westwood One remains committed to the traffic business and will continue to implement additional leading edge technologies into the platform.
The modifications to the traffic business are part of a series of reengineering initiatives identified by management to improve the operating and financial performance of Westwood One in the near-term, while setting the foundation for profitable long-term growth. These changes will result in a staff reduction of a net 15 percent and the relocations of some operation centers during the fourth quarter of 2008, with the remaining markets moving into the 13 hubs by the end of the second quarter of 2009.
"The enhanced digital platform, overall changes in communications technology, and scale benefits of larger, 24/7 hub centers better position Westwood One as the go-to source in the traffic business. As a result, the business is better aligned to create cost efficiencies that improve the Company's overall profitability," stated Tom Beusse, Westwood One's President and CEO. "We can now provide to our customers a superior offering of customized, real-time, 24-hour localized traffic reports and best choice route alternatives for over 350,000 miles of roadway."
Concurrently Westwood One is also taking actions to address underperforming programming, top-grade the sales force and reduce other corporate expenses. The reengineering of Metro Networks and the other actions are expected to result in an annualized cost savings of $25 million to $30 million. The Company anticipates taking a restructuring charge in the range of $20 million to $24 million in the third quarter.
"Though we regret the need to reduce staff, these initiatives will help ensure that Westwood One retains its industry leadership position. In order to do so, we must continue to evolve and differentiate our products to best serve the end user. We remain committed to our strategy of becoming a leading, integrated cross-platform company, delivering premium content and services and will continue to review every aspect of our business for opportunities that improve Westwood One's operations."
Westwood One will host a conference call next week to discuss the reengineering of Metro Networks. Details of the call will follow.
(PRNewswire)