Learfield IMG College Institutes Furloughs, Salary Cuts To Some Staff
Learfield IMG College has instituted a 90-day cost-savings plan that includes furloughs and salary reductions across a portion of its 2,200 employees. The company, which owns the multimedia rights to 200 colleges, said that its finances have been adversely affected by the coronavirus pandemic and these personnel moves were in response to lost revenue from canceled college basketball tournaments and spring sports. "We've instituted a temporary cost-savings plan, but we haven’t eliminated any jobs. We see these as temporary measures for a temporary problem," the company said in a statement. This is a tough way for Cole Gahagan to take over the company -- he was promoted to President & CEO last week, replacing longtime company chief Greg Brown. Learfield IMG College already had encountered financial headwinds from last year's integration of the two companies after the merger and COVID-19 has only contributed to it. Learfield IMG College did not say specifically how many employees are affected by the cuts or how much of a pay reduction they took. The execs who make the most took the biggest hits, the company said. The company over the last few days has been reaching out to ADs and sponsors to share the news about furloughs because their point of contact might be changing at the property level.