Westwood Reveals Restructuring Plans

There has been what seems like an announcement a week from Westwood One President/CEO Tom Beusse regarding the restructuring and realignment of the company’s personnel and portfolio, most recently the announcement of a massive overhaul of the traffic division. On a conference call Thursday Beusse discussed changes at Metro Networks including the reduction of regional traffic hubs from 60 to 15 and a 15 percent reduction in workforce. The “re engineering” is designed to take advantage of new digital technologies and reduce the recurring operating costs of the company (which is dangerously close to being suspended or delisted by the NYSE with stock hovering under $1 a share) by $25-$30 million. Some syndication deals may be in danger as well as the company re-evaluates its show line-up. There will also be a restructuring of the sales force as all sellers are being directed to sell the entire network portfolio vs one staff for trafffic and another for the national networks.

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