PHILADELPHIA (AP) -- The parent of Clear Channel Communications told workers on Tuesday it is cutting 1,850 jobs, as the largest owner of U.S. radio stations grapples with the economic meltdown.
The cuts represent about 9% of the company's total workforce and affect staff throughout the company, in radio, outdoor advertising and corporate offices.
In a companywide email, chief executive Mark Mays told employees that the company is facing an "unprecedented time of distress." He also said, though, that "Everyone in our investor group, on the board, and in the executive leadership team remains bullish about the long-term growth prospects for Clear Channel."
The advertising market has been soft, especially for radio stations.
In the third quarter, the company lost $86.1 million before discontinued operations compared with a profit of $253.4 million a year earlier. The just-concluded quarter included $148.8 million in merger-related expenses and other one-time items. Revenue fell by 4% to $1.7 billion.
The steepest drop was in radio advertising, down 7% to $844 million.
Private equity firms Bain Capital Partners and Thomas H. Lee Partners formed CC Media Holdings to acquire Clear Channel in July for $17.9 billion.
San Antonio-based CC Media Holdings trades over-the-counter. Clear Channel operates more than 800 radio stations reaching better than 110 million listeners in 50 states.
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