Hundreds of jobs will be slashed at iHeart Media as the debt-ridden radio and podcast giant has been crushed by music streaming, The Post has learned.
The company headed by CEO Bob Pittman has cut less than 5% of a workforce of more than 10,000 employees, a source with knowledge said, amounting to hundreds of job losses as the company streamlines its business and eliminates redundancies.
Wendy Goldberg, an iHeart spokeswoman, confirmed the layoffs. She noted that the company has focused on expanding its Gen Z audience and that its broadcast radio audience has “more listeners than it did 10 years ago.”
“Although in a company of 10,000 people very few jobs have been affected, there have been some and we never take this step lightly no matter how few jobs it entails; every team member is important to us and has our respect and appreciation.”
The firm began laying off employees Monday, and the layoffs will continue Tuesday, which one iHeart employee called “sneaky.”
“They want to bury the bad news during the presidential election,” the source said.
On X, some laid off employees have already been posting about the cuts.
“Today was my last on @SportsTalk790, as iHeart executed nationwide layoffs,” Stan Norfleet, host of Houston’s SportsTalk 790, posted late Monday.
“Yes, I was caught off guard, given I’d just agreed to an extension,” he added. “That said, I remain forever grateful for the opportunity! I have the utmost FAITH the next season will be as rewarding. Thank you!”
The company, which operates roughly 860 stations in over 160 US markets, has roughly $5.21 billion in total debt and $4.85 billion in net debt, the firm said in its second-quarter earnings report.
“I have heard that iHeart is going through a major restructuring,” a top radio executive who does not work at iHeart told The Post. “They have to show their lenders that they are improving profits.”
“I heard there is a lot of pressure on Pittman to stem the decline.”
The source also noted, however, that Pittman and iHeart CFO Richard Bressler both still have access to a private plane. According to securities filings, iHeart leases aircraft at a cost of $42,000 a month.
“You’ll know they are serious when they fly commercial,” the source said.
The most junior debt in iHeart is now trading below 60 cents on the dollar, the source said. Revenue in the overall radio industry is down 10% this year, the source said.
“Great way to start a Monday, a little “life” news,” Marty Bannister, a local talk show host who focuses on college and professional sports in Ohio, wrote on X.
“Due to company cutbacks, my position at @iHeartRadio has been eliminated. Thanks to all who listened to our show ‘The Press Box’, we had fun and once again, local radio loses. Been through this before, and will rebound as always.”
Other cuts included Jay Recher and Zac Blobner, who co-hosted Tampa Bay’s sports radio talk show on 95.3 WDAE. Both men posted about the cuts, with Blobner saying he was “blindsided” by being laid off.
In August, The Wall Street Journal reported that iHeart engaged law firm Simpson Thatcher & Bartlett to lead negotiations with creditiors on restructuring its hefty debt load. The law firm did not comment.
The San Antonio, Texas-based iHeart emerged from a bankruptcy in 2019 after having slashed its debt to less than $6 billion from more than $16 billion. But the company continues to struggle with generating enough cash to pay down debt.
For the quarter ended June 30, revenues were up 1% due to an uptick in digital audio advertising, though adjusted earnings dipped by 21.4% year-over-year, driven by increased expenses.
The Journal reported that iHeart faces a slew of debt maturities in 2026, 2027 and 2028 amounting to virtually all of its $5.2 billion debt load.
The company reports third-quarter earnings on Thursday.
