ARN has announced measures in response to the impact of the decline in advertising revenue created by the Coronavirus (COVID-19) crisis.
Since March, ARN has significantly reduced costs across the business in order to protect jobs. This has included a review of discretionary spending, putting recruitment on hold and encouraging staff to take annual leave.
After careful consideration and rigorous financial risk assessment, additional action is now required.
All full-time staff will reduce their full-time equivalent working week by one day. Staff can access their annual leave entitlements to help offset the impact on take-home pay for as long as they have leave accrued, and all staff will be allowed to take a portion of leave in advance of earning it.
On-air talent will continue to broadcast five days a week as usual while taking a minimum of 10% reduction in fees across various cost control measures.
The board, CEO and management team are taking a 20% reduction in salaries for an initial six-month period and will forgo all incentive and bonus payments in 2020.
ARN CEO Ciaran Davis said: “Although ARN is in a strong position, like all media businesses our revenue has been significantly impacted by COVID-19.
“The priority of the board and management team is the safety and wellbeing of all of our staff. These decisive measures have been put in place to protect jobs and ensure ARN remains in a strong position as a stable business – and employer – in the long term.
“Australia is facing a widespread fall in marketing and advertising activity and our response to this crisis is being reviewed on an on-going basis as we assess the revenue performance over the coming weeks and months.
“I’d like to thank all our team members for ensuring that our recent transition to working from home has been controlled and managed effectively. ARN’s technology investments have meant our radio broadcasts have been unaffected and even under any potential tightening of lock-down measures across the community, ARN is confident all of our shows will remain broadcasting uninterrupted across our network.
“During times when the nation needs a sense of community, connection and some normality, the power of radio is undisputed and we remain dedicated to providing the best possible content for our audiences and delivering solutions to our clients across broadcast radio, on-demand audio, and digital. I am confident the measures we have implemented today will put ARN in the strongest position possible to endure and succeed in these uncertain times.”