Paradigm Implements Layoffs, Paycuts Amid Coronavirus Shutdown
Paradigm is cutting back as the industry has ground nearly to a halt amid the coronavirus pandemic. As much as one-seventh of the agency could be out of work, and the remainder will see reductions in…
Paradigm is cutting back as the industry has ground nearly to a halt amid the coronavirus pandemic.
In addition to anticipated layoffs of about a hundred or more of its 600-plus employees, The Hollywood Reporter also has learned that payroll will be reduced for those who remain at the company.
CEO Sam Gores broke the news in an agency-wide Zoom call this morning, and a second call with department heads was to follow. Although certain divisions, such as Paradigm’s industry-leading music department, have been clearly impacted as live events such as music festivals were among the first to go as the virus spread, the cuts are not expected to be confined to any specific business unit.
A source tells THR that Gores’ message was “painful but necessary,” and that the agency head added that he would made every effort to provide impacted individuals with needs including healthcare.
The hope is that the crisis will subside after a few months and as business picks up again, Paradigm will be able to rehire the employees it has let go – and that it won’t suffer attendant client departures in the meantime, a common fear somewhat mitigated by the fact that the pandemic has put all companies in the same boat. Although Paradigm is the first agency confirmed to undergo cuts, other firms are widely expected to follow suit.
This article was originally published by The Hollywood Reporter.