At the end of each year media companies go through evaluations that determine the path forward for the next year. If revenues aren’t as high as expected or expenses are soaring, staff reductions are considered. Most people who work in the media business know that this is an unstable industry, and we’re all one call away from being on the outside looking in. Whether we love connecting with the audience and the staff we work with or not, we’re all still part of a business. If that business isn’t profitable, things eventually change.
Having been the bearer of bad news a few times in my career, there’s no perfect way to handle it. I’ve handled it with class, and also in ways that I wish I could do over. Letting people go affects their livelihood. It sucks. However, it’s a responsibility you accept when you become a manager. If it leaves you questioning whether you want to manage or not, that’s understandable. But if you don’t deal with it someone else will. Knowing that it’s a possibility, how you handle it, and when you handle it is important.
Being familiar with the ins and outs of this business, I recognize things need to be done before year’s end. I also understand that some groups try to move things around to avoid last minute situations but sometimes they’re difficult to avoid. That said, regardless of who’s as the fault, a company and its leadership team have failed if layoffs are being delivered to employees a week before Christmas.
That happened last week when ALLCITY informed sixteen members that they were being let go. Brandon Spano, ALLCITY’s CEO has always been a straight shooter with Barrett Media, so I appreciated him being accountable, and acknowledging that the public optics for the moves don’t make the company look good. HR and legal issues put the company in position to look bad. Executives know that HR and legal folks are in place to help them prevent future messes, but if layoffs are being discussed internally, they usually don’t come up as an option a week before happening. They’re usually discussed a month or two ahead of time.
If a company wants to maintain consumer and advertiser confidence, letting 7% of the workforce go the week before the holidays sends the wrong message. Not only does it sting those being let go, but it hurts those staying too. If it can happen to them, it can happen to me is what people usually think. Morale takes a hit, all because of terrible timing. Advertisers meanwhile are given the impression that the people they do business with lack heart or are poor planners.
I’ve called out iHeartmedia many times before for situations like this. They’ve consistently handled layoffs poorly. The verbiage you use when parting ways with people speaks volumes about how you view and treat people. For instance, I disliked iHeart referring to employees as being ‘dislocated’ and Bob Pittman remarking ‘we’re not getting rid of air talent’ right after eliminating a bunch of air talent. It was tone deaf, and easily avoidable if just showing common decency while providing a reminder that a business is being run, and difficult decisions have to be made. Someone as skilled and smart as Bob Pittman shouldn’t allow that type of mistake to happen at his company.
Brandon Spano of ALLCITY said in his interview with Derek Futterman that he expects the company to invest in new markets, and the layoffs are about reallocating capital into areas that generate positive cash flow. Though that may be necessary, and a better move for the company’s long-term growth, it doesn’t excuse the timing of the layoffs. It’s also not what employees or recently laid off staffers want to hear when jobs are being eliminated. It’s OK to say ‘today is about those affected, tomorrow we’ll discuss our path forward.’
Entering 2025, questions will increase if ALLCITY endures future layoffs. With overall funding for the company above $25 million, months after a Series B funding round led by TEGNA raised $12 million, and markets according to Spano being cash-flow positive for months this year, the layoffs are the first sign of negative press for a group that has mostly received favorable attention. Just last month, ALLCITY announced a new partnership with Samsung TV Plus, The Roku Channel and Xfinity, and in August, the company expanded into Dallas. If things are going well as Spano says they are, laying off sixteen people a week before the holidays shouldn’t happen.
Considering that this is their first experience laying off staffers in nine years of operating, it’s understandable if they don’t have this down to an exact science. Let’s hope they never do. It’s not something a company should want to excel at. I’m hoping ALLCITY and other media operators who have to make layoffs, help themselves by avoiding unnecessary mistakes. If moves like this have to be made, address them sooner, don’t be in a rush to talk about the future when revealing that members of your team were let go, and make sure HR and legal folks have their ducks in a row well before the holidays.
Nobody being cut will like the news, but if they worked hard for you, afford them the decency of knowing before the holidays hit so they have time to heal. There’s no reason to hurt people worse who you’ve relied on to help your company or your brand’s reputation with future employees, existing employees, and potential advertisers, if you don’t have to. It simply comes down to planning, and taking action sooner rather than later. The realities of business are often unavoidable but when you choose to address it is not.
Quick Hits:
- If what I’m hearing is accurate, changes are expected for ESPN Radio in 2025. The network had an excellent 2024, but sources I’ve spoken to have shared details that have some internally scratching their heads. Knowing how these things work, conversations are just that until plans are finalized. Let’s see how things play out before passing judgment.
- Barstool Sports founder Dave Portnoy deserves credit. The hiring of Jon Gruden was not only outside the box like the Deion Sanders addition but it’s been an even bigger hit. Gruden’s videos teaching football, sharing stories, and just mixing it up with the staff have been awesome and must watch. I’ve said this many times, Portnoy’s ability to identify talent and create compelling content is as good as anyone out there. The addition of Gruden just reinforces it once again.
- I hope ESPN’s 30 for 30 division or MLB Network’s documentary team is hard at work on a Rickey Henderson film. ‘The Man of Steal’ is a title that doesn’t require much brainstorming. I’ve long felt a highly promoted documentary on Henderson was overdue, and it makes even more sense now following his passing. Rickey was the greatest leadoff hitter and base stealer of all-time, and a colorful character that captured the public’s attention. There have been a few good MLB docs in recent years (Pete Rose, Derek Jeter, Reggie Jackson) but overall it’s an area MLB can get much stronger in. Start with Rickey and then follow up by highlighting the greats of the recent past to educate the next generation of fans. It’ll bring them closer to the history of the game, one of baseball’s best qualities.
- Some will complain about Nick Saban swearing on television. Not me. I love Nick’s candor, passion, and honesty on College Gameday, and if folks hate hearing a four letter word on sports television, they may want to avoid everything else on television besides the local channels. Saban doesn’t sugarcoat anything, and it’s made an already great program even greater.
- The Athletic‘s piece on Lee Fitting was troubling for a few reasons. Fitting exited ESPN over a year ago, and was hired by the WWE in January 2024. He’s done great work for the company since coming on board, and ESPN has continued thriving without him. If the allegations are true, and Fitting acted improper at ESPN, it raises questions for WWE’s leadership team, and whether or not they take sexual harassment seriously, especially following the Vince McMahon mess. However, the timing of the news is also peculiar. Why is this story coming out at the end of the college football season instead of right after Fitting left?
- The Men in Blazers are doing something really cool. They’re giving fans a chance to vote on America’s Top Ten Soccer Bars. Place your vote here. Bars have been selected from Chicago, St. Louis, St. Paul, New York, San Diego, Portland, Atlanta, Washington D.C., Doylestown, PA and Addison, TX. The bar voted #1 will earn bragging rights as the “Best Soccer Bar” in the U.S., and receive a special visit from the Men in Blazers with CEO Roger Bennett watching a game with fans.
- If you love learning about business, you should be following Savannah Banana‘s owner Jesse Cole on LinkedIn. His advice, lessons, and views on brand building are exceptional. Watch this one, and I’m sure you’ll want to watch others.
- Young broadcasters coming up in the business, take a minute and watch the clip below of Stephen A. Smith. Being at the top of the media industry doesn’t happen without sacrifice. Smith knows that all too well. There are many different paths to the top but the one thing the greats of this industry have in common besides talent is a relentless drive and a willingness to sacrifice to be great.
Thank You
When I heard that Snoop Dogg and Dr. Dre were working together on a new record, I was curious to see if they still had the magic touch. The video below confirmed they absolutely do. If you enjoy their style and songs, and haven’t heard ‘Thank You‘, search it on YouTube. It’s a banger.
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