Clear Channel Cuts 9% of Workforce

NEW YORK Clear Channel, the nation's largest radio group, today said it was eliminating 1,850 positions representing 9 percent of its workforce. Mark Mays, CEO of Clear Channel, delivered the news in a company-wide e-mail.

The cuts were made across the company, in corporate, outdoor and radio.

"We are facing an unprecedented time of distress in the general economy, and the ripple effects have hit some of our largest customers hard," said Mays.

Clear Channel's new owners Bain Capital Partners and Thomas H. Lee Partners, which acquired the company in July, are looking to trim about $400 million in costs to offset more than a $20 billion debt.

The company, which has been steadily trimming staff and cutting costs, is also expected to save money by increasing the practice of replacing local programming with syndicated shows. In several markets, the company has already replaced local morning programs with Ryan Seacrest's Los Angeles-based national show.

Clear Channel and other radio groups are struggling to offset two years of negative growth. In November, radio revenue dropped a staggering 20 percent, according to the Radio Advertising Bureau.

In its first earnings report since going private, Clear Channel reported a dip of 4 percent. The company's radio business suffered the steepest decline, down 7 percent.

A Clear Channel rep declined comment.