Arbitron lays off 10 percent of work force

Media ratings company Arbitron Inc. said Tuesday it was immediately cutting 10 percent of its full-time employees, or about 110 people, in a move that will save more than $10 million a year.

The company said it would pay severance and assist with finding jobs for the laid off employees, and book a charge of $8 million to $9 million in the first quarter of 2009.

Savings during the year will offset the charge, the company said.

Arbitron maintained its outlook for all of 2009, including revenue growth of 6 percent to 10 percent compared with $368.8 million in 2008.

It also expected annual earnings per share between $1.40 and $1.55, versus $1.36 in 2008.

The company plans to report its first-quarter earnings results on April 21.

Arbitron shares, which fell 93 cents, or 6.9 percent, to close at $12.57 in the regular session, rose a nickel to $12.62 in after-hours trade.

Arbitron makes the Portable People Meter, a cell-phone-size device that records what radio stations their wearers hear in a system designed to accurately rate audiences for radio stations.

Critics said the system undercounted minorities, but the company settled in January, by agreeing to change the way it recruits volunteers and making certain payments.