Emmis Communications lays off 32 companywide
Indianapolis-based Emmis Communications Corp. laid off 32 workers Wednesday following a weak fiscal third quarter, the company said Thursday.
Emmis cut about 3 percent of its workforce across several markets, including Mike Corbin, who was a news anchor and reporter for WIBC-FM (93.1) in Indianapolis.
"We've made some changes and they're very painful changes," Emmis CEO Jeff Smulyan said during a Thursday conference call. "This is always very, very hard for us."
The moves follow a quarter in which Emmis generated $5.5 million, or 12 cents a share, in profit. But its third-quarter revenue of $59.6 million was down 5.3 percent from about $63 million in the same quarter a year ago. Shares of Emmis dropped about 3 percent to 66 cents Thursday.
In addition to layoffs, Emmis also is cutting the pay of all senior executives. The company wants to cut $7.5 million from its budget, including $5.3 million from its radio properties.
The company owns 19 FM and four AM radio stations. Besides Indianapolis, Emmis has stations in New York, Los Angeles, St. Louis and Austin, Texas.
Corbin of WIBC tweeted Wednesday afternoon that he is no longer employed at WIBC-FM (93.1). An Emmis spokeswoman confirmed that Corbin was one of the employees laid off.
"Corporate cost cutting, but we parted on GREAT terms," the tweet read. "We'll see what the future holds." Before Corbin joined WIBC in March 2011, he had spent nine years at WISH-8.
In another move, Emmis declined to renew the contract of Deon Levingston, the company's New York general manager. Charlie Morgan, a senior vice president who oversees Emmis' Indianapolis stations, will take over the New York market on an interim basis for about six months, Smulyan said.
Smulyan blamed weak radio industry growth for Emmis' struggles. The company also is facing new and fierce competition for one of its most important stations, 105.9-FM (KPWR) in Los Angeles, also known as Power 106.
But Smulyan said Emmis is growing its NextRadio app, which enables smartphones to receive FM radio signals. In addition to NextRadio and strong ratings for most of its stations, Smulyan said Emmis' cost-cutting moves will strengthen the company in the months ahead.
"We felt we needed to make those changes and we needed to reflect the realities of the economics we're in," Smulyan said.
Call IndyStar reporter Jeff Swiatek at (317) 444-6483. Follow him on Twitter: @JeffSwiatek.
Call Star reporter James Briggs at (317) 444-6307. Follow him on Twitter: @JamesEBriggs.
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