Posted by chicagomedia.org on January 22, 2009 at 11:17:53:
In Reply to: Restructuring Underway At Clear Channel posted by chicagomedia.org on January 20, 2009 at 11:02:01:
Agonizing trend
Clear Channel's cut of 1,800 jobs just another step in media purges
January 22, 2009
BY LEWIS LAZARE Sun-Times Columnist
It doesn't lessen the severity of the blow to the more than 1,800 people who lost their jobs within the Clear Channel Communications empire on Inauguration Day, but it's a fact that such bloody purges now happen with gut-wrenching regularity throughout the media world and in vast numbers of other businesses.
Altogether, Clear Channel pared 9 percent of its total work force Tuesday, even as Barack Obama in his inauguration speech was delivering a grim prediction of tough times ahead for all Americans. And in the wake of Tuesday's firings, talk within industry circles indicated Clear Channel could cut yet another 9 percent of staff in just a few weeks.
But with ad revenues plunging at some 1,200 radio stations that Clear Channel operates, management was forced to lower overhead throughout the network, including Chicago, where the company operates six radio stations ranging from adult contemporary WLIT-FM (93.9) to urban contemporary WGCI-FM (107.5) and smooth jazz WNUA-FM (95.5).
Clear Channel management in Chicago refused to comment on the pink slips issued in this market Tuesday, but sources familiar with the situation said the majority of those let go held advertising sales jobs. Among the highest-profile on-air talent axed Tuesday was Rick O'Dell, who hosted WNUA's 9 a.m. to 2 p.m. weekday show, and another hourlong weekend show. Also gone in the purge is evening host Danae Alexander, one of the first on-air talents hired at the station when it went new age/jazz more than 20 years ago.
Sources said it probably made sense for Clear Channel to target Alexander and O'Dell, because they had both been at WNUA for at least 20 years, and as two of WNUA's longest-tenured staffers, O'Dell and Alexander were thought to command fairly hefty salaries.
Reached Wednesday, O'Dell did say local Clear Channel executives had never discussed with him a renewal of his contract that expired at the end of 2008. As for future plans, O'Dell said he has none, except to take a couple of months off and then look at his options here in Chicago and possibly beyond.
"There isn't a lot of hiring going on in radio right now," O'Dell said.
Now that Clear Channel has slashed salary overhead at WNUA, sources say the bigger issue for the company is what to do with the station going forward. The jazz format isn't working in Chicago, where the station is among the lower-rated outlets in the market, with ad revenues to match. Most local radio executives expect a format change at the station sooner, probably, rather than later. The only question is: What format would make sense? Some observers believe the best option may be country, a format where the only serious competition locally is WUSN-FM (99.5).