Entercom Employees Hit with Layoffs, Furloughs and Pay Cuts

RADIO ONLINE | Thursday, April 2, 2020

Entercom has sadly joined the ranks of radio companies to institute layoffs, furloughs and pay cuts in the wake of the COVID-19 pandemic. The company says it has eliminated numerous positions but didn't provide a specific number. In a memo to employees, CEO David Field described the cost reductions as "significant." The company also eliminated bonuses for the first and second quarters and cut salaries between 10% and 20% for anyone earning more than $50,000 per year. Field is taking a 30% salary reduction.

"I am deeply saddened that we need to make these painful moves at this time, but they are necessary under the circumstances," Field said in the memo. "We are doing everything in our power to minimize the number of layoffs through shared sacrifice across the organization, but we will still need to eliminate or furlough a significant number of positions."

Entercom has also suspended its 401(k) program employee match - a now common practice in the industry. The company earlier announced that it was curtailing shareholder dividends and had drawn cash from its revolver credit loan to provide financial flexibility.

Field said the company hopes to restore regular salaries, bonus eligibility and its 401(k) plan match at the start of the third quarter.