APA Faces Second Round Of Cost Reductions Including Furloughs, CEO Jim Gosnell Tells Staff
APA faces a second round of salary reductions and furloughs, with board members expected to absorb the biggest cuts, according to a June 30 memo to staffers from agency president and CEO Jim Gosnell.
The reductions come three months after APA implemented reductions in the wake of the coronavirus-related shutdown of most of the entertainment industry in mid-March.
It’s not yet known how many employees will be affected, or in which departments, but Gosnell did note that those furloughed will retain health benefits and other resources through the summer, after which those benefits will be “revisited,” according to the memo.
APA has more than 300 employees across six global offices, according to The Hollywood Reporter. The representation business, like the rest of the entertainment industry, has been hard-hit by the shutdown. Major agencies including Endeavor/WME, CAA, Paradigm and UTA have made similar cost-reduction moves from layoffs of support staff to across-the-board furloughs, salary reductions and top execs giving up salaries entirely.
Gosnell’s memo to staff:
First of all, please know that all of you have been top of my mind in my thoughts and in my heart 24/7 as we continue to navigate the devastating impact the coronavirus pandemic has had on the entertainment industry and our world. I have so much pride in our APA family, our colleagues and our clients, and I truly believe in each of you and everything you do.
Like so many companies across the globe, this is truly the most difficult period in our 58-year history. We had hoped the salary reductions and other adjustments we had implemented in March would be sufficient to address the unprecedented shutdown of our industry due to the coronavirus pandemic. But after much agonizing and anguish, in addition to the recent spikes across the country and delays to planned re-openings, we now must take additional steps to ensure our future.
To achieve this, we will be making further adjustments to our workforce that includes furloughs and salary reductions, with APA board members experiencing the biggest decreases. All furloughed employees will retain their elected health benefits and other resources through the summer, after which time we will revisit these adjustments. Your department heads or supervisor will reach out to you directly with further details. You will continue to have APA resources for any questions and may reach out to them or me at any time.
I am genuinely sorry for all our colleagues being affected, but we must take these extraordinarily difficult steps to protect and preserve as many positions as possible during these unprecedented times. We are hopeful that today’s additional measures will be short-lived, remain cautiously optimistic that things will start to improve as soon as possible with opportunities for all to return to APA, on the other side of this pandemic, tackling our new normal stronger and more innovative than ever.
Until then, stay positive, stay well, and let’s support each other so we can all get through this together.