Cumulus Media Hit with Layoffs, Furloughs and Pay Cuts
|RADIO ONLINE | Wednesday, April 8, 2020|
Like many other companies in the industry, Cumulus Media finds itself instituting layoffs, furloughs and pay cuts due to the financial impact of the COVID-19 pandemic. Yesterday, in a videotaped message to employees. Cumulus CEO Mary Berner laid out the details for a plan she said "was not easy but necessary." Calling it a COVID-19 people plan, Berner said the plan was temporary.
Under the plan, over 80% of salaried employees will be taking three individual weeks of furlough (no work, no pay). The three weeks will be taken in one week installments over a 15-week period beginning April 20th.
Two additional groups will also be affected including 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 other group includes 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.
Berner did not give an exact number regarding how many Cumulus employees will be put out on a 90-day furlough. She did say the company intends to bring them back when normal business operations resume.
In the video message she said, "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."
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