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In an attempt to avoid outright layoffs, employees making $100,000 a year or more will undergo pay cuts, and some will be suspended or furloughed. The board of the directors will make the “largest financial sacrifice,” according to the agency.
APA, which has offices in New York, Los Angeles, Nashville, Atlanta, Toronto and London, is the latest agency whose personnel decisions amid the pandemic’s economic fallout have been made known. On March 20, Paradigm laid off more than 100 members of its 600-plus staff, with the remaining taking pay cuts of up to 50 percent. The heads of both UTA and Endeavor are forgoing the remainder of their 2020 salaries, with the latter company laying off around 250 employees (mostly employed in roles related to upkeep and service of its physical facilities) and informing its WME partners that an expected buyback of their equity shares would be postponed indefinitely. UTA also has implemented company-wide proportionate pay cuts, as has Verve.
APA’s decision was announced Friday during a mandatory agency-wide Zoom meeting, after which president and CEO Jim Gosnell issued the following statement:
With the U.S. now the epicenter of the global pandemic, more than a quarter of the world’s population on lockdown, record unemployment, a public health crisis more dire than ever known in our agency’s 58-year history, and a financial impact worse than 9/11 and the housing crisis combined, APA, like so many other companies across our industry and the world, must take immediate and thoughtful action to ensure our company will traverse these unchartered waters and emerge as strong as possible.
To combat these unprecedented times, we are taking the necessary cost-cutting measures companywide to protect our business with minimal impact on our most vulnerable employees. While we have never in the history of this agency had a more difficult challenge to overcome, APA’s senior management team is 100 percent focused on overcoming the common hurdles we are all now facing. With courage and compassion, we will all get through this together.
As every aspect of our lives is being affected across the globe, we are constantly mindful of protecting our personal health and safeguarding our families. Our hearts go out to our colleagues in New York, now at the epicenter of this public health crisis in the U.S., as well as those in other APA offices across the country that now find themselves in hotspot zones. Our doors may be closed, but our hearts and minds remain open. We know these circumstances are extremely difficult for everyone, but as we all continue to battle against this virus, APA remains steadfast and vigilant in our commitment to do everything we can to win for our colleagues, clients and communities who are always top of mind.
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