The Endeavor Group Holdings, who is best known for holding the William Morris Agency, will lay off up to 250 of its employees due to the coronavirus pandemic. Some of the largest cuts have affected the sport-based IMG Academy, which hosts a school of professional athletes, as well as several employees who cannot work from home such as groundskeepers, restaurant workers and support staff from its various agencies.
The company’s CEO’s have also announced that they will be undergoing several cost-cutting measures in the near future to help keep the company running as well. Co-CEO’s Ari Emmanuel and Patrick Whitesell will also be foregoing the rest of their salary for the year.
“We will be implementing a number of additional measures beginning this week and through April that will affect compensation and some jobs across the company … as part of this, Patrick and I will not be taking a salary for the remainder of 2020,” Emanuel wrote, referencing Whitesell.
According to Forbes, the company was $4.6 billion in debt as of last August, right before its plans to go public. Many of its investments have been in live entertainment, which have been utterly devastated due to massive shutdowns caused by the coronavirus outbreak.
A week ago the Paradigm Talent Agency announced that it was laying off nearly 100 employees due to concerns regarding the coronavirus outbreak. The company represents a number of high profile music acts such as Coldplay, Tiffany Young, Halsey, and Ed Sheeran. Others such as LiveNation have also been hit hard by the outbreak, as the company’s stock dropped by 50 percent after the ticket vendor shut down many of its live events.
Read the full memo below:
I don’t think any of us could have imagined we’d be in the place we are today.
As we all focus inward to protect our personal health and safeguard our families, every company around the world is simultaneously faced with safeguarding the health and future of its business. We are no different. All parts of our company are feeling the effects.
With that in mind, we are in the process of assessing our operations globally to develop a plan that will protect the business while limiting the impact on as many employees as possible. In addition to the cost-cutting efforts outlined a few weeks ago, we will be implementing a number of additional measures beginning this week and through April that will affect compensation and some jobs across the company. The effects on each business will vary, and you will receive more specifics from your respective leaders, to the extent any of these decisions may impact you. As part of this, Patrick and I will not be taking a salary for the remainder of 2020.
These decisions are not being made lightly, knowing the impact they may have on you and your families during these uncertain times.
We appreciate the strength and compassion that you continue to show for one another as we navigate this challenging situation.