iHeartMedia Layoffs: Why Is The Audio Company Cutting Jobs?

As iHeartMedia (IHRT) shuffles in what it calls a “new organizational structure,” the company has reportedly laid off dozens of employees across the country, including some prominent DJs. The move is part of an effort to modernize operations, the company said.

The company said in a statement to Variety that the number of layoffs is “relatively small,” based on its employee base of 12,500, but did not give an exact number for how many employees’ jobs were cut.

In an internal memo obtained by the news outlet, Chairman and CEO Bob Pittman and President and COO Rich Bressler said the layoffs were “the unfortunate price we pay to modernize the company.

“We have had to make some tough decisions, and in the process some employees have been affected. Please know we were thoughtful in this process and have provided enhanced severance benefits as well as outplacement assistance for any impacted employees, and we want to thank them for the valuable contributions they have made.”

iHeartMedia said that it is looking to take advantage of the technology and artificial intelligence investments it has made as it enters 2020. The company sited new advertising strategies, data use, and digital platforms as some of the investments it has made.

“iHeart is the rare example of a major traditional media company that has made the successful transformation into a 21st century media company – one with unparalleled scale, reaching 91% of Americans each month with our broadcast assets alone, more than any other media company,” Pittman said in a statement.

“We are now using our considerable investments in technology to modernize our operations and infrastructure, further setting us apart from traditional media companies; improving our services to our consumers and advertising partners; and enhancing the work environment for our employees,” he added.

Along with the new organizational strategy, the company announced a new structure to its Markets Group, which will continue to be led by Greg Ashlock.

Shares of iHeartMedia stock were up 2.16% as of 10:36 a.m. EST on Wednesday.