An internal memo from iHeartMedia Chairman/CEO Bob Pittman and CFO/COO Rich Bressler, which All Access has obtained, outlines the company’s proactive steps to reduce spending in response to anticipated financial challenges.
Despite the company’s significant achievements in the audio platform market, it is not immune to the economic pressures facing many businesses today. As a result, iHeartMedia will be implementing various cost-saving measures, such as suspending the 401(k) match, limiting backfilling of non-mission-critical roles, and reducing discretionary spending.
The leaked memo states these measures are intended to safeguard the company’s future and prepare it for an economic recovery.
“Our goal is to do everything we can to get through this challenging economic time while protecting our employee base as much as possible. Therefore, we’ll implement the following necessary cost savings,” the memo read.
The company plans to temporarily suspend its 401(k) matching program until the advertising marketplace improves. Any contributions made so far this year will not be affected. Other measures iHeartMedia will take include only filling “mission-critical positions” and halting or reducing all discretionary spending, including non-essential travel and entertainment, overtime, outside vendor spending, and temporary contractors.
