United Talent Agency has issued company-wide salary cuts in the wake of the coronavirus pandemic, a UTA spokesperson confirmed to TheWrap.
“Like companies across the industry and our country, UTA is taking some immediate and painful steps to ensure we get through the current public health and economic crisis as strong as possible,” the agency said in a statement to TheWrap. “In addition to aggressive cost-cutting measures, this includes asking our colleagues at every level to take pay reductions, structured so our most senior colleagues make the largest financial sacrifice. The understanding and support we’ve received from our colleagues has been incredibly gratifying, as is their recognition that these difficult steps are intended to ensure the long-term strength and viability of our company. While we do not know what the future holds, we are committed to being candid and transparent about where things stand as we navigate these uncharted waters together.”
Staffers were told of the move in a video conference call with UTA CEO Jeremy Zimmer and co-presidents Jay Sures and David Kramer. Additionally, Zimmer, Sures and Kramer team will forgo salaries for the rest of the year.
The move comes as talent agencies in Hollywood feel the effects of a city-wide shutdown. Last week, ICM Partners furloughed “floating assistants,” support staff not assigned to a specific agent or department, TheWrap has confirmed.
Those affected were paid a month’s salary and medical benefits were extended through May. When the agency reopens its Century City headquarters, the staffers will have the opportunity to reapply for their lost positions.
Additionally, WME has temporarily frozen expense reimbursements and future expenses are prohibited until further notice, a source tells TheWrap. Staff cuts have not yet hit WME, CAA and UTA.
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.
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.
Variety first reported the news.