DEVELOPING: CAA has dropped a bomb today. The agency confirmed today rumors that the agency has fired 90 agents and executives, and has suspended 275 employees due to the COVID-19 pandemic. This is the first layoff exercise the agency has conducted, up to this point, although technically affected hourly employees are not being laid off, they are being shelved for now. The agency will pay for their health benefits throughout the license, and those affected can apply for unemployment to get something out of the sting. Those who are exempt are primarily assistants, receptionists, mailroom, and others whose duties are required only when the agency operates from headquarters. CAA left its space in Century City in mid-March.
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The agency has just released this statement, but did not disclose the number of agents the company released. The layoffs include agents and department executives across the agency. Those who have just been laid off will receive a collective payment and benefits package that will essentially keep them financially complete until October, the end of the CAA fiscal year. That will be a small consolation for officers who have to try to find work in an unimaginably difficult period:
“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. ”
In April, CAA announced a plan to weather the coronavirus pandemic, without layoffs, but with company-wide salary cuts of up to 50%, on a progressive scale, and CAA leaders Richard Lovett, Bryan Lourd, and Kevin Huvane charged no fees. salary for the year. The agency’s main income was subjected to the upper end of the percentage reduction scale.
