Paradigm Chairman and CEO Sam Gores announced that the agency would furlough roughly 100 staffers in the wake of the coronavirus pandemic and reduce payroll for those who remain on staff, TheWrap has learned.
The exact number of employees furloughed is not known, but the agency employs at least 600 people. In a companywide conference call on Friday morning, Gores assured staff that he would made every effort to provide for the furloughed employees, including health care. The furloughs are expected to last several months at least.
Paradigm, whose sizable music division has been hard hit by the stoppage of all concert touring, is the first Hollywood talent agency to undergo cuts. Other talent agencies are expected to follow suit.
The news came one day after California Gov. Gavin Newsom ordered residents statewide to stay at home in response to the ongoing coronavirus pandemic. The order, which went into effect on Thursday at midnight and will last “until further notice,” will affect nearly 40 million people.
“This is a moment we need to make tough decisions,” Newsom said at a press conference on Thursday evening. “This is a moment where we need some straight talk and we need to tell people the truth: We need to bend the curve in the state of California.”
Newsom’s announcement comes moments after Los Angeles County officials announced a “safer at home” emergency order on Thursday evening that will require all residents — beginning at midnight — to stay at home and limit movement outside unless it is absolutely essential.
The order also closes all non-essential retail businesses and prohibits all public or private gatherings of 10 people or more that occur outside of a single-family home. It will remain in effect until April 19, with the possibility of an extension.
“The only time you should leave your home should be for essential activities,” Los Angeles Mayor Eric Garcetti said.