Radio Station Owner Cumulus To Furlough Workers

ATLANTA (AP) — Cumulus Media Inc., the nation's second largest radio station owner, has asked employees to take unpaid leave for five days from Friday until June 30 to cut costs in light of the advertising downturn.

All employees from the chief executive down will be furloughed, said Jim Worthington, general manager of Cumulus Media's radio stations in Amarillo, Tex.

Cumulus Media posted a net loss of $393.7 million, or $9.55 per share, in the fourth quarter, which included a charge for the impairment of goodwill of half a billion dollars. Revenue fell by 11 percent to $75.1 million.

The furlough plan comes on the heels of 590 job cuts, or 2.7 percent of the work force, at Clear Channel Communications Inc., the largest owner of U.S. radio stations.

On Tuesday, Clear Channel said it's taking the action as advertising budgets remain pressured by the recession. Some on-air personalities will be laid off.

In January, Clear Channel cut 1,850 positions. Both of its layoffs affect the radio division. Clear Channel, based in San Antonio and owned by CC Media Holdings, also has an outdoor advertising unit.

Shares of Atlanta-based Cumulus fell 6 cents, or 4.9 percent, to $1.17 in afternoon trading.