The world’s largest concert promoter continues to feel the effects of the COVID-19 pandemic. Live Nation announced that it will cut additional staff to save money in the wake of lost funds due to concert cancellations.
Most divisions in the company, including concert and ticketing groups, will have more staff cuts and furloughs. The news comes as the company reported losing over $500 million dollars in the second quarter of 2020. In 2019’s second quarter, the company made over $3 billion, but in 2020’s second quarter, Live Nation made 98 percent less, raking in roughly $74 million.
There are no reports as to how many or what percent of employees will be affected by the latest round of cost-saving measures for the company.
Live Nation’s financial troubles began at the end of February, when its stocks dropped 25 percent in one week due to the beginning of the COVID-19 pandemic. By mid-march, stocks were down almost 50 percent from February. Also in March, Live Nation suspended all tours. In April, the company began cutting costs. In the wake of these financial struggles, CEO Michael Rapino gave up his salary and there were pay cuts for executives, a hiring freeze and furloughs affecting 20 percent of company staff.
To minimize the company’s losses, Live Nation announced they would sell $800 million in bonds and institute a ticket-relief program to keep consumer loyalty. Additionally, the company called for the Payment Protection Act to be extended and proposed and announced a drive-through concert with reduced capacity. In August, several acts performed a live stream show to help workers affected by the pandemic.
The company’s furloughs resulted in a lawsuit alleging gender and race-based discrimination. In July, the company announced plans to double the amount of black executives by 2025 and having 30 percent of its directors being diverse. The company also pledged $10 million toward programs aimed at Black and other acts from underrepresented groups.