Podcasting is a growing part of Audacy’s business, but the parent company of Cadence13, Pineapple Street and 2400Sports studios says it won’t be exempt from a series of company-wide layoffs. The total number of employees affected is less than 5% of the company’s total workforce – approximately 250 people – and spread across all divisions and markets. The majority of the cuts will come from its radio broadcast side, not podcasting, however.
“We remain committed to this exciting transformation that has made us a much stronger organization, but in light of the current macroeconomic headwinds, like so many other businesses, we have taken proactive steps to mitigate the impact of any downturn. “said an Audacy spokesperson. “This includes assessing budgets, reducing expenses and also reducing our workforce.”
The downsizing comes just weeks after Audacy CEO David Field told analysts the company intended to navigate the economic turmoil by achieving “substantial” savings through cost reductions.” significant”.
“We are working to achieve substantial sustainable cost savings through a number of measures aimed at improving margins and profitability across the business,” Field said on the company’s second quarter earnings call. society. “We believe we will be able to achieve significant cost reductions without hampering our strategic priorities and growth plans.”
During that call, CFO Rich Schmaeling said Audacy was working on a program “to significantly reduce our expenses” and that he would provide more information on the scope and extent of these actions during his call. of the third trimester.
These are the first layoffs at Audacy since two rounds of budget cuts in 2020, triggered by the COVID-19 pandemic. According to the Philadelphia Business Journal, after these cuts, no more layoffs are expected for the rest of this year.
Podcasting was Audacy’s fastest-growing business in the second quarter, with revenue up among “senior teens” according to management.
“We see no significant macro-impact on [ad] demand in podcasting. And we still see great opportunities for this business,” Field said earlier this month. Audacy also continues to make what Field called “strategic adjustments or pivots” in its podcast business, which also includes the Podcorn ad market.
Schmaeling said it meant “tough choices” as they “re-engineered the content mix” in an effort to drive profits in the podcast business. “We expect this to be an increasingly profitable business over the next few years, and it’s a really attractive adjacency to our core radio business,” he said on the conference call.
Audacy said its third-quarter business was declining due to what Field attributed to “deteriorating macroeconomic conditions” and “elevated uncertainty.” He said the result is that advertising “headwinds” have impacted Audacy’s business.
“I don’t think digital advertising is immune,” Field said. “but I think we saw at least in the second quarter that across all audio companies, digital audio advertising was relatively stronger than other digital media and we see continued strength in the third quarter.”