LOS ANGELES (CelebrityAccess) — As the fallout from the COVID-19 pandemic continues to spread in the live music industry, Deadline is reporting that Paradigm is preparing to institute widespread layoffs.
Deadline reported that Paradigm boss Sam Gores held a companywide conference call on Friday to let staffers know that 100 or more employees might face what was described as temporary layoffs. Paradigm currently employs about 700 people, and sources told Deadline that the layoffs may impact a majority of the agency’s employees.
Sources told Deadline that Paradigm said that employees will receive assistance with health insurance and other things and that they will hopefully return to work once the crisis ends.
While the layoffs haven’t been implemented yet, the conference call was intended to warn employees about what’s down the road, Deadline reported.
According to Deadline, multiple staffers were in the process of trying to find a landing place at other agencies, but as the publication noted, it is a challenging environment for would-be job seekers.
Many companies in the live music sector have high debt-to-earnings ratios which, and while that might not being a big deal when the markets are flush and investors have money to spend, it may spell trouble for those companies amid the financial turmoil from the pandemic.
Case in point: Endeavor. In the prospectus for its ultimately canceled IPO last year, Endeavor revealed that it had a whopping $7bn in liabilities, including $4.6 billion in long-term debt. Worse, Endeavor in 2018 reported net income of $231 million in 2018, after years of losses, with much of that profit coming from one-time items.