Business

Cumulus Broadcasting to cut more than 250 jobs

Cumulus Broadcasting, which operates six Lexington radio stations, has announced a second restructuring that will look to cut more than 250 jobs in its markets.

The report in the Atlanta Business Chronicle on Monday said the cuts will amount to almost 7 percent of the 3,700 people employed by the company, the second-largest radio broadcasting conglomerate nationally behind Clear Channel.

"We don't have anything coming up that I know of right now here locally," said Lexington market manager Hal Hofman.

The Lexington stations lost seven of their 42 employees during the first Cumulus restructuring last November.

Those cuts included full-time news staffers Joe Gillespie and Kendra Steele of WVLK-590 AM. Scott Johnson, now news director, was the only reporter spared.

Also cut was Robert Lindsey, longtime operations manager and program director for WVLK.

"I think it might be something where it's just catching up to other markets," Hofman said of the new restructuring.

Cumulus chief executive officer Lew Dickey told the Atlanta Business Chronicle that the newest restructuring came because of the drop-off in advertising linked to the recession.

"Like all media companies we are not immune to this and consequently have to realign our fixed costs to match the revenue environment, and that simply is what we are doing," he told the publication.

The move comes as rival Clear Channel is also facing more questions.

Reuters reported last week that Standard & Poor's might cut the radio giant's debt ratings further.

The company already is in junk status but might be downgraded further because of concerns that Clear Channel might not be able to meet terms of its credit agreements later this year or next.

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