CAA is about to implement major layoffs and licenses this week that will amount to a double-digit reduction in the Hollywood talent agency’s workforce, experts say. Variety.
The cuts are believed to be going everywhere, with nearly 90 officers and executives on staff facing pink slips and 275 support employees facing licenses in numerous agency departments and offices in Los Angeles, Nashville, New York. and London. CAA called the cuts “an unprecedented and painful time” for the agency, saying the decision was the result of cost-cutting moves fueled by pandemic-induced disruptions to entertainment.
“CAA started working remotely earlier this year due to the pandemic. Everyone in the company participated in the compensation reduction in the hope that we could keep all employees financially complete until the end of our fiscal year, September 30, 2020. We are honoring that commitment, even for those affected by today’s announcement, ”CAA said in a statement. “Starting this week, approximately 90 agents and department executives from across the agency will be leaving. Additionally, we are licensing approximately 275 attendees and other staff. The company will continue to fully pay the health plan premiums for those who are suspended. “
The CAA’s sports and music divisions are expected to be among the hardest hit, another source close to the company said.
Led by President Richard Lovett and managing partners Kevin Huvane and Bryan Lourd, the agency is not alone in confronting the painful economic realities caused by the coronavirus, compacted by the continued loss of CAA revenue from former writing clients, who they were fired in an ongoing battle with the Writers Guild of America.
Following initial virus blocks this spring, CAA instituted agency-wide salary cuts on a scale that first impacted the highest-paid. WME saw a similar round of cuts thanks to the pandemic and the bigger problems facing its parent company, Endeavor. UTA was the first to come out with salary cuts hoping to avoid layoffs, which have not yet been enacted in closing, while ICM Partners laid off a nominal number of support staff. Paradigm was hit by the shutdown of live entertainment and was forced to make deep cuts for some 250 employees.
CAA is also embroiled in costly litigation with the WGA over the union’s effort to ban packaging fees and agencies from investing in production entities. CAA, like other agencies, lost hundreds of client writers in April 2019 amid confrontation with the WGA over the guild’s efforts to reform the rules governing talent agents representing guild members.
Here is CAA’s full statement:
CAA started working remotely earlier this year due to the pandemic. Everyone in the company participated in the compensation reduction in the hope that we could keep all employees financially complete until the end of our fiscal year, September 30, 2020.
We are honoring that commitment, even for those affected by today’s announcement.
But, with greater visibility into the challenges of COVID-19 from fiscal year 2021, we have made the difficult decision to implement workforce reductions in addition to our ongoing cost-saving measures.
Starting this week, approximately 90 agents and department executives from across the agency will be leaving. Additionally, we are licensing approximately 275 attendees and other staff. The company will continue to pay in full the health plan premiums for those who are suspended.
This is an unprecedented and painful time, and the words are insufficient. Today, we simply say that we extend our sincere thanks and our deepest gratitude to our departing colleagues.
