We read in the news almost every day about a well-known national business or corporation having to trim its budget by laying off workers. Large companies like Google and Pfizer have announced thousands of layoffs in recent months, and stores like Circuit City and Macy's are closing locations altogether. One of the latest companies that has been forced to make this unpleasant decision is Clear Channel Communications, Inc., which is based out here in San Antonio. Earlier this week, the company cut 1850 jobs, which constitutes nine percent of its total workforce. Even with an economy that is proving stronger in terms of job growth than most other states, Texas is still proving to be susceptible to these difficult economic times.
Chief Executive Officer Mark Mays indicated that most of the layoffs would be coming from the ad-sales department, but that all of its corporate, radio and outdoor advertising divisions would be affected by the necessary decision. Closest to the company's home base, Clear Channel has laid off at least twelve employees from its San Antonio radio stations. In all, Clear Channel hopes to trim around $400 million in expenses by releasing employees it can no longer afford to pay.
Another way that Clear Channel plans to cut costs is to transition some of its local programming to already existing syndicated programs. However, the significant concern then becomes that listeners will lose interest if the local feel for a station disappears. When the listeners leave, so do the advertisers. So, Clear Channel may be creating a new problem in its attempts to solve the first one. The truth is, there are no easy answers when the economy is in a recession and people's livelihoods are on the line.
If you run a small business or a large corporation in Austin, San Antonio or Houston and you are facing some tough business decisions , we have Austin business attorneys and San Antonio bankruptcy lawyers and Austin bankruptcy attorneys at Bertolino LLP who can help. Our business and bankruptcy lawyers in Austin also can work with you on a restructuring plan that will improve your company's performance or to work out issues that you may be facing with your employees. Please contact our Austin, Houston, or San Antonio office for help today.
Contact a Texas Lawyer at Bertolino LLP
Bertolino LLP maintains offices in Austin, Houston, and San Antonio. To reach an attorney in the Austin office, call 512-717-5432. For the San Antonio office, call 210-247-9907. For the Houston office, call 713-357-2467. You may also contact the firm by e-mail.