On June 23, 2025, OUTFRONT Media Inc. (the “Company”) announced a restructuring and reduction in force plan (the “Plan”) intended to achieve the Company’s strategic goals of increasing sales demand, enhancing customer experience, optimizing internal cost efficiencies, and realigning its organization. The Plan provides for a reduction of the Company’s workforce by approximately 120 employees, or 6% of the Company’s total number of employees. The Company expects the reduction in force associated with the Plan to be completed by the end of the second quarter of 2025.
The Company estimates that it will incur approximately $18.6 million in total restructuring charges in connection with the Plan, consisting of severance payments, employee benefits and related costs and professional fees. The Company expects to incur these charges in the second quarter of 2025. These charges consist of approximately $16.4 million of future cash expenditures, the majority of which will be made over the next twelve months, and approximately $2.2 million in non-cash charges for stock-based compensation. The Company intends to exclude the charges associated with the Plan from its non-GAAP financial measures.
The charges and cash expenditures that the Company expects to incur in connection with the Plan are subject to a number of assumptions, and actual results may differ materially. The Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with the implementation of the Plan.
SignValue’s take: These cuts have been long overdue. We’ve seen an emphasis on cashflow margins at OUTFRONT ever since Jeremy Male exited. OUTFRONT is taking a pass on unprofitable transit contracts and is making cuts to improve margins. This is way overdue for a company which had a lost decade in which revenues, expenses, assets and debt grew but cashflow remained constant and the stock dropped in half. The market liked today’s news. OUTFRONT finished the day up 1.9%. The S&P 500 was up 1.1%, Lamar was up 0.6% and Clear Channel Outdoor was flat. Clear Channel Outdoor are you listening?
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