Tuesday, December 19, 2006

Layoffs Trim Six From Waitt Radio Networks Staff

Waitt Radio NetworksBefore getting into radio, Kurt Luchs spent 10 years as a comedy writer for The Onion newspaper and "The Late Late Show with Craig Kilborn."

But there was nothing funny about what he had to do earlier this week.

The general manager of Waitt Radio Networks' operation in Omaha handed out pink slips Monday, trimming a staff of 22 down to 16.

"I hate to fire people or lay people off," Luchs said. "I've never had to do this with a company before and I've never had to do it like this before."

Waitt is not in any kind of financial trouble, he said, but a business cannot be run inefficiently, either.

"I've had a foot in both the business and creative side," Luchs said. "If something makes business sense, you have to do it. That includes doing the work with the optimum number of people. Strategically, going forward, we needed more flexibility."

Luchs declined to name the six people who lost their jobs, saying only that they were all on-air personalities.

Business Model Was Inefficient
Waitt provides eight music formats (country, oldies, classic rock, adult contemporary, etc.) to radio stations across the country from its studios near 90th & West Dodge Road. Each format utilized as many as five on-air personalities to deliver around-the-clock programming. It was a business model that was inefficient, Luchs said.

"There was a wide disparity in the amount of work each individual person was doing, through no fault of their own," he said. "Some people were doing between 10 and 20 lines (voiceovers between songs and commercials) per hour all the way up to the high end of 40 or 50 per hour."

Following Monday's reorganization, Luchs said each on-air personality will have the same workload.

"Some will do more work than they were doing, others will do less and some will be doing the same," he said.

Stations who subscribe to Waitt's programming will likely notice little difference. If anything, they will benefit from greater flexibility, he said.

"The hallmark of the new work model is the ability to work in multiple formats," Luchs said. "The old model made it very daunting to try a new format. We needed four or five new jocks just to experiment.

"Now (stations) will be able to choose among different announcers in each daypart since each announcer is handling two or three formats."

Employees Given Severance, Eligible For Re-Hire
Luchs said the employees who were let go each received a severance package based on their years of service, plus money equal to one month of COBRA health coverage (that they can spend as they choose). Because they are eligible for re-hire, they are being made aware of job openings in other parts of the NRG Media Inc. organization, he said, and received outplacement service counseling and the opportunity to use Waitt's studios to record airchecks and demo tapes.

Luchs said he would rather not be known as "Ebenezer Scrooge" for those who wonder if there could have been better timing to the layoffs.

"The time to do it is always in question," he said. "If we would have waited until after Christmas, these people would be spending money they wouldn't even know they would not have down the road."

1 comment:

Unknown said...

Editor's Note: The following comments were posted to the original story. However, a post on Dec. 24 was removed Dec. 26 at the request of that person. Thus, the original posts had to be refiled as one.


At 2:54 PM, Anonymous said…

"The time to do it is always in question," he said. "If we would have waited until after Christmas, these people would be spending money they wouldn't even know they would not have down the road."

Are you serious? This guy was a writer? I hope he was a better communicator with the written word.


At 4:39 PM, Anonymous said…

I have heard that some of those laid off were not even told in person. In other words - they were told over the phone. I know of one former staffer who was informed from a part timer (BEFORE the GM phoned him) that he had lost his job. All of this at Christmas? Shame on you Mr. Luchs... this will now be your reputation.


At 11:04 AM, Anonymous said…

As a radio professional, I always thought Waitt was a classier operation vs the large national conglomerates. I am disappointed to learn this is not the case. Greed rules once again. Merry Christmas.


At 12:15 PM, Kurt Luchs said…

Normally I would not respond to three brave posters going under the collective banner of "Anonymous," but as my company and my management decisions are the subject of discussion, and layoffs have not been the norm at Waitt Radio Networks, I'll take a crack at it.

First, I'll admit to being better with the written word than with extemporizing over the phone with a reporter making an unexpected call. He was very polite and professional, and his questions were cogent, so if my answers were not, I'll take the hit for that. Having published in the New Yorker, McSweeney's and the Onion (among others), I do feel I can stake my claim as a writer. This is one reason I'm behind a desk and not behind a microphone here.

Second, Waitt is a 24/7 operation. We have three shifts here every day, including weekends. Obviously a restructuring layoff like this has to be prepared quietly in order to keep the place from going crazy with paranoia and to keep things running. Yes, telling every affected employee in person is the ideal in a situation like this, but because we are not a 9 to 5 business it was just logistically impossible. Right up until the announcement was made, people's schedules were shifting under us. As it is, I'm amazed that only one person found out through the grapevine before I was able to get to him personally. But this simply proves my point that there was no happy way or happy time to do this. I arrived here November 13 and immediately began to set the plan for restructuring in motion, having already seen that the work model was flawed and had to be changed as quickly as possible. It was announced just as soon as we could announce it. If I had waited until after Christmas, these same courageous flamers would be castigating me for letting the affected employees spend all their paychecks on presents without any warning.

No one has to like the reality that this move was absolutely necessary and long overdue, but that is the truth and I won't apologize for it. It is not "greed" to eliminate positions that are proven to be unnecessary. It is just plain common sense. If this were a publically held company, to keep superfluous positions open would be considered criminal negligence. And while I hate having to send anyone home at any time, let alone at Christmas, and while these were all good employees and good people, this restructuring will keep the company sound, position it strategically for the future and protect the jobs of the bulk of the staff who remain. Anyone who thinks the company could have kept all the jobs and still be competitive does not have even a nodding acquaintance with reality.

As Mr. Spock says at the end of The Wrath of Khan, "The needs of the many outweigh the needs of the few." It is the essence of my job to consider the big picture for the whole company and to look out for the many, even if that means (regretfully) hurting a few. I hope to God I never have to do anything like this again. Yet I also believe that Waitt will not only survive but thrive as a direct result of this change, and that this team will be more successful than ever.


At 3:35 PM, Ghost of Twelve Ninety KOIL said…

So what's next? What will the next level of cuts bring? Simply simulcasting the local Waitt/NRG Media stations onto the network?

101.9 could become "AC Pure"
98.5 could become "AC Active"
106.9 would become "BOB FM"

The WRN Modern Rock/Country/Classic Rock/Oldies formats could be reverse-simulcasted onto the other local Waitt stations. Thus eliminating talent at the AM/FM operation as well. More cost savings! Kill two birds (or two entities) with one stone.

Brilliant!


At 3:48 PM, Anonymous said…

Mr. Luchs,
You would have been better off counting to 10 and not posting then writing what you did.
Now, people like myself who may have felt bad for you being put in the position to lay employee's off have to re-think that position.
Good luck, with the attitude you displayed in your post you will need it.