iHeartMedia Aims To Save $250M In 2020 With Furloughs, Senior Pay Cuts

iHeartMedia unveiled Tuesday (April 14) multiple cost-saving measures, including pay reductions for senior management and furloughs for non-essential staff, as the company aims to save $250 million amid the coronavirus pandemic.

The audio giant said that it would initiate $200 million in operating expensive savings in 2020, in addition to about $50 million in savings announced back in February as part of modernization initiatives.

The company will also suspend new hiring, travel and entertainment expenses, and reduce consultant fees and other discretionary expenses.

“We moved quickly to respond to the economic downturn resulting from the COVID-19 pandemic in order to mitigate some of the business impact and to better position ourselves to take advantage of an eventual recovery when normalized demand returns,” said Bob Pittman, iHeartMedia’s chairman and CEO, in a statement. “As we navigate the unprecedented challenges posed by this crisis, we remain confident in our business and focused on the health and safety of our employees.”

The cost-saving measures comes after Variety confirmed in late March that Pittman would forego his salary for the remainder of 2o2o and give up his annual incentive bonus in response to the pandemic.

“We believe this substantial financial flexibility will prove a further competitive strength for our Company should the current economic slowdown continue for a prolonged period,” added Rich Bressler, iHeartMedia’s president, COO and CFO.

Entertainment companies are rolling out cost-saving measures to preserve money amid the uncertainty associated with the coronavirus pandemic. Just yesterday (April 13), Live Nation Entertainment announced $500 million in cost reductions in 2020 via hiring freezes, furloughs, executive-pay cuts and more.