*** UPDATE: SIGNIFICANT COMPANY LAYOFFS PLANNED NATIONWIDE, SPECIFICS NOT YET AVAILABLE ***
Troubled broadcast operator Entercom Communications (NYSE:ETM), owner of WRKO and WEEI in Boston and many other stations, has sent a disturbing memo to employees, one that only adds to already substantial worries over the firm’s ability to survive.
According to the note, which was circulated widely across the company, matching contributions to 401k plans will be suspended, effective immediately. In addition, employees working under deferred compensation plans will see that program terminated. Finally, a wage freeze for 2009 is now being considered.
Entercom shares finished trading today at $2.34, down 31 cents.
Especially amazing is how Entercom’s corporate management still sees itself as a leader, rather than complete failure. From the memo, take a look at this condescending passage:
As individuals, these are the times that test our mettle and reveal our character. In difficult times, there is a temptation to succumb to our weakest impulses and become paralyzed by fear, self-doubt and bitterness. That is the path to victimhood.
On the other hand, our greatest human triumphs have come at times of adversity and disruption. Our greatest heroes have emerged at the darkest of times. As Winston Churchill once said, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty”.
The strong steel themselves and rise to meet life’s challenge head-on. With confidence, perseverance, ingenuity, and an unflinching eternal optimism, they move forward proactively and relentlessly to capitalize on the opportunities that emerge in times of trouble. The strong play offense and find ways to succeed and overcome obstacles. It’s not easy, but easy isn’t what life is all about.
When you consider what they’re willing to admit, how much worse is it behind the scenes? What hasn’t yet been revealed about the company?
Staffers are said to be alarmed, with the term “whistling past the graveyard” used to describe the memo. Nobody is fooled.
What, for example, has become of the Field family’s personal wealth? We know Pops foolishly blew a fortune in a failed attempt to prop up Entercom’s share price. But what about David? Is it time to sell the Nantucket spread? Any margin calls?
This is so sad. People’s lives, families, significant others, homes, etc. are at stake. Tragic. I am crying in my cosmo for the many good folks that work there. Brian, what do your inside sources say the reaction will be – a diaspora?
WHA HA HA HA HA HA HA HA
breath breath
WHA HA HA HAHAHAHAHAHAHAHOHOHOHOHEHEHEHE
breath
HAHAHA
HOHOHO
HEHE
chuckle chuckle.
oh sometimes
its just good.
Now government workers aka welfare recipients.
Howie should hold Entercom hostage for every stinking penny he has coming to him. “How does it feel being the hostage, now, Entercom?” This is poetic justice writ large.
I have an idea for the staffing people at RKO. Loose the AM Drive Jack Ass and pick up something like Quinn and Rose in AM drive. (Truth be told, white noise would be better than who’s on the air now.) Replace the crossover dolt with somebody like G Gordon Liddy.
You’ll sell more advertising. Then maybe, just maybe, revenue will increase and who knows where it will go from there.
Brian,
I’ve heard stories of stations going dark. What is the likelihood of local Entercom and Citadel stations going off the air?
Not only should Howie hold them to every penny, if they try to remove him from the air he should file a suite for obstructing his livelihood. Clearly RKO has obstructed his ability to work for a “talk” radio station. No need to include the Sox in the suite they will shortly removed as an obstruction to Howie’s show:(
On another note RKO should file suite against the felon for liable. They have plenty of taped evidence to show he cannot do talk radio…Hippity Hoppy beware your next.
Notice how RKO plays its annoying “contest rules” spot over and over? The station has to fill the slots programmed for commercials that obviously are not being sold. I am constantly amazed that failing enterprises like newspapers and this radio station never choose to improve the product to attract more business. They seem to be content to stand on the deck of a sinking ship and watch the sunset.
This is truly a last gasp. I have been involved in a situation like this. Deferred Compensation Plans are essentially executive plans to defer above the amount that a 401(k) allows.
The rub is that it is NOT usually an asset of the holder, but can be seized by the company. That’s the risk that an exec takes in contributing to one.
If Entercom is TERMINATING the Deferred Comp Plan, then they have most likely taken the assets from the participants. Probably to pay creditors.
In terms of a 401(k) match this is usually a budgeted amount set aside each year. If they are discontinuing it that means that they have dipped into the assets that would fund it. Bad, bad news as well as bad, bad business practice.
Having participated in something like this before, if I worked for Entercom, I would be concerned about the ability to make payroll in the coming months. When your operating costs exceed your revenues, just ask the last guy out the door to shut off the lights.
chris.
“poetic justice”
spot on mate.
HA HA.
(need java).
Just saw the stock sink below the 2 dollar line. I did notice last night that the ad counsel seems to be the biggest advertiser they have. I found it striking after hearing the debate to then be battered ads for all these federal aid programs. Are we already in a social state and Sen. Government will be the nail in the coffin?
I hope Howie celebrates this afternoon, guess we will find out if they did get a gag on him or not.
Too true Larry…what ever happen to the feed back from the focus groups they had last year???
Don’t ratings tell it all?
I guess when you “know it all” you don’t need external input.
It already started.
Bri, what about the Herald’s confirmation of Jimmy Severino III leaving the Imus show in a snit-fit (officially, from the horse’s mouth)?
Man, Jimmy can’t afford this kind of negative publicity. I hear his act is wearing thin with the powers that be at WTKKK.
What a whiner. Howie will have his job pretty soon… one angry white guy replacing another.
And an angry white woman coming into replace Reese. I LOVE it!