APA to Undergo New Pay Cuts, Furloughs

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APA President Jim Gosnell

The "biggest decreases" in pay will hit the board of the talent agency, stated president Jim Gosnell.

Three months after implementing salary reductions, APA talent agency is set to undergo a new round of furloughs and pay cuts. 

APA president and CEO Jim Gosnell wrote Tuesday in a note to staff that the cost-cutting moves were necessary given the novel coronavirus pandemic's impact on its representation business.

The agency, which has more than 300 employees and six global offices including its Beverly Hills location, did not disclose the number of positions impacted by the restructuring. APA's board members will see the "biggest decreases," wrote Gosnell of the pay cuts. 

The furloughs by APA arrive days after ICM Partners disclosed on June 26 plans to lay off 40 support staffers. Other agencies, as well as many Hollywood companies, have had to undergo similar cost-cutting efforts since a film and TV production shutdown in mid-March. 

Paradigm temporarily laid off 130 employees at its Beverly Hills office, while Endeavor, the parent company of WME, cut 83 staffers in the same city. In April, CAA unveiled companywide pay reductions. UTA began to furlough staffers in May, with 171 employees in Beverly Hills temporarily laid off, according to a disclosure with the California Employment Development Department. 

Gosnell's note to staff on June 30 is below: 

Dear Colleagues,

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.

Sincerely,

Jim