Hundreds of jobs are to be lost at iHeart Media as the debt-laden radio and podcast giant is crushed by music streaming, the Post has learned.
The company, headed by CEO Bob Pittman, has cut less than 5% of its workforce of more than 10,000, a source familiar with the matter said, leaving hundreds of people out of a job as the company streamlines its business and Eliminating redundancies.
iHeart spokeswoman Wendy Goldberg confirmed the layoffs. He said the company has focused on expanding its Gen Z audience and that its broadcast radio audience has “more listeners than it did 10 years ago.”
“Although very few jobs have been affected in a company of 10,000 people, some have been affected and we never take this step lightly, no matter how few jobs are involved; Every team member is important to us and deserves our respect and appreciation.”
The company began laying off employees on Monday and will continue the layoffs on Tuesday, which an iHeart employee called “sneaky.”
“They want to bury the bad news during the presidential election,” the source said.
On X, some laid-off employees are already posting about the cuts.
“Today was my last day @SportsTalk790As iHeart executes layoffs nationwide,” Stan Norfleet, host of Houston’s SportsTalk 790, posted late Monday night.
“Yes, I was surprised because I had just agreed to an extension,” he said. “That said, I will always be grateful for this opportunity! I am confident that the next season will be equally rewarding. Thank you!”
The company, which operates about 860 stations in more than 160 U.S. markets, has total debt of about $5.21 billion and net debt of $4.85 billion, the firm said in its statement. Second quarter earnings report.
“I heard that iHeart is going through a major restructuring,” a top radio executive who no longer works at iHeart told The Post. “They have to show their lenders that they are improving profits.”
“I hear there’s a lot of pressure on Pittman to stop the decline.”
However, the source also said that both Pittman and iHeart CFO Richard Bressler still have access to a private plane. According to securities filings, iHeart leases the aircraft at a cost of $42,000 per month.
“You’ll know they’re serious when they fly commercial,” the source said.
iHeart’s most junior debt is now trading below 60 cents on the dollar, the source said. Revenue in the overall radio industry is down 10% this year, the source said.
Marty Bannister, a local talk show host focusing on college and professional sports in Ohio, wrote on X, “Great way to start Monday, a little “life” news.”
“Due to company cuts, my position @I Heart Radio Has been terminated. Thank you to everyone who listened to our show ‘The Press Box’, we had fun and once again local radio lost. I have been through this before and will bounce back like I always do.
Other cuts include Jay Recher and Zack Blobner, who co-host Tampa Bay’s sports radio talk show on 95.3 WDAE. Both men posted about the cuts, with Blaubner saying he was “blindsided” by being laid off.
In August, The Wall Street Journal informed iHeart appointed law firm Simpson Thatcher & Bartlett to lead negotiations with creditors on the restructuring of its heavy debt load. The law firm did not comment.
San Antonio, Texas-based iHeart emerged from bankruptcy in 2019 after reducing its debt from more than $16 billion to less than $6 billion. But the company is struggling to generate enough cash to repay debt.
For the quarter ended June 30, revenue increased 1% due to a surge in digital audio advertising, although adjusted earnings declined 21.4% year-over-year due to increased expenses.
The Journal reported that iHeart faces multiple debt maturities in 2026, 2027 and 2028, roughly equal to its $5.2 billion debt load.
The company reported third-quarter earnings on Thursday.
