Updated: Arbitron Cuts 10% Of Staff
COLUMBIA, MD -- March 24, 2009: Arbitron confirmed Tuesday that it is cutting about 10 percent of its full-time staff.
President/CEO Michael Skarzynski said, "The company is realigning and restructuring in order to focus on our strategic priorities: strengthening our radio measurement service and developing new, multimedia services. This restructuring is also designed to speed decisionmaking so that we can better capitalize on growth opportunities."
Skarzynski called the layoffs "a difficult and painful decision" and said Arbitron is offering transition assistance and outplacement support for the people who are leaving in the restructuring. He continued, "The company is reevaluating the skill sets that we need given the rapidly changing and competitive media measurement marketplace. We also believe the cost reductions provided by this restructuring will contribute to the company's long-term success."
He said Arbitron remains committed to its continuous improvement programs and to investing in growth areas, and said the realignment should be completed before the end of the first quarter.
Arbitron anticipates that it will incur pre-tax expenses of approximately $8 million to $9 million in the first quarter of 2009, related principally to severance and benefit expenses as a result of the restructuring and expense-reduction program. But it expects to see savings over the rest of the year that will offset the Q1 charge, and a run-rate expense reduction of about $10 million in 2010.
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