The parent of Clear Channel Communications Inc. told workers on Tuesday that it is cutting 1,850 jobs as the nation's largest owner of radio stations grapples with the economic meltdown.
The cuts represent about 9 percent of the company's total work force and affect staff throughout the company, in radio, outdoor advertising and corporate offices.
Among those affected in Tucson were two well-known personalities: Alan Michaels, who has been on-air for Clear Channel and its predecessors for 28 years, and vice president and general manager of the outdoor division Dave Sitton. Sitton has been a commentator at UA basketball and football games and coaches the University of Arizona's club rugby team.
He said he found out at 8:30 Tuesday morning.
"It's one of those deals," Sitton said, declining to elaborate.
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Michaels, who had been the morning host on KWFM 1450-AM, said about 14 local employees were laid off, mostly sales people. He said he was surprised by his job being cut, although there had been rumors of an inauguration day announcement.
Asked what he will do now Michaels said, "I don't know. Look for work."
But he noted that Clear Channel had offered him a "very gracious" severance package.
Clear Channel's radio stations in Tucson are KNST 790-AM; KWFM 1450-AM, KXEW 1600-AM; KOHT 98.3 FM; KRQQ 93.7-FM; KTZR 97.1-FM; and KWMT 92.9-FM.
In a company-wide 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, company lost $86.1 million before discontinued operations compared to a profit of $253.4 million. The just-concluded quarter included $148.8 million in merger-related expenses and other one-time items. Revenue fell by 4 percent to $1.7 billion.
The steepest drop was in radio advertising, down 7 percent to $844 million.
Private equity firms Bain Capital Partners LLC and Thomas H. Lee Partners LP 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 over 800 radio stations reaching more than 110 million listeners in 50 states.