AEG Presents Announces Layoffs, Furloughs; Marciano To Staff ‘This Is Not Your Fault’
AEG president and CEO Dan Beckerman announced a cost-reduction plan to employees June 8, Pollstar has learned. In a subsequent letter to employees obtained by Pollstar, AEG Presents chairman and CEO Jay Marciano said, among other things, that those most affected would have the best “safety net” the company could possibly provide.
As initially reported by Billboard, the cost reduction plan introduced by Beckerman this morning included layoffs, furloughs and salary reductions.
Marciano said that his subsequent email message was “the most difficult one I’ve ever had to write,” addressing the challenges the U.S. is facing in terms of the COVID-19 pandemic; intolerance and inequality in light of the death of George Floyd and the subsequent protests; and his own company’s situation.
In discussing the return of the live event industry, he says, “Simply put, we will reopen when we are confident that it is safe to do so.” He said that the impact and scope with which the world has changed in the last months has been “impossible to fathom.”
Marciano concludes his letter by stating: “On a personal note, I want you to know I have much empathy for the hardship the actions being taken today will cause many of you and your families I’d like to drive home one point: nobody should feel like they are responsible, that they could have done something differently, or that they could have better prepared. I know this may sound obvious, but in the coming days and weeks please remember, this is not your fault. We have assembled the best team in our industry. This is due to your hard work and commitment, and I am grateful for each of you. Even during these uncertain times, I am confident in one thing: our business WILL be back, and as strong as – if not stronger than – before. I know this doesn’t make today any easier, but our future is on tomorrow’s horizon.
AEG Presents is a titan in the live music industry, the second largest promoter in North America behind only Live Nation. The company puts on some of the largest international tours, including the 2019 Major Tour Of The Year, Elton John and The Rolling Stones.
Marciano and Beckerman were a part of the task force formed in March to tackle the challenges arising from the COVID-19 pandemic, along with Michael Rapino (CEO and President, Live Nation Entertainment), Rob Light (Managing Partner and Head of the Music Division, CAA), Marc Geiger (Partner and Head of Music, WME), Sam Gores (Chairman, Paradigm), Marty Diamond (Head of Global Music, Paradigm), and David Zedeck (Global Head Of Music, UTA).
AEG Presents / Goldenvoice is also the promoter of the Southern California megafest Coachella, which was reportedly asking acts if they could play 2021, which could mean a postponement from the currently scheduled October 2020 date.