By: E&P Staff Barely two weeks after being named interim CEO of Freedom Communications, Burl Osborne announced that company-wide salaries will be cut by 5%.
In a memo to employees, Osborne cited revenue shortfalls behind the move to trim pay.
"We had hoped that the economy would start to improve and our ability to build revenue would gain traction in the second quarter," he wrote. "Unfortunately, the challenges we face have not eased during the second quarter and the outlook for the remainder of the year is in question."
The change in pay is effective July 13 and exempts those hired within the last six months after Jan. 1.
Osborne wrote that the executive team considered many options including furloughs and layoffs.
Freedom Communications is trying to
deal with some $700 million in debt the company took on when it bought out some members of the Hoiles family in 2004. A big debt payment is due at the end of the year. Freedom said last fall it was not in compliance with its debt-to-revenue ratio, which determines terms of debt agreements.
Osborne, the former publisher of The Dallas Morning News and current board director of Freedom, was appointed interim CEO of Freedom on June 17. He succeeded Scott Flanders, who was named CEO of Playboy.
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