AEG is implementing significant employee cuts starting July 1, AEG chief executive Dan Beckerman announced in an email today, saying staff and cost reductions were a result of the long term impact of a global shutdown of concerts and events from the spread of the virus causing COVID-19.
The cuts are a mix of layoffs, furloughs and salary reductions that will be implemented within all departments including AEG Presents, the concert and festival promotion group responsible for events like Coachella, Firefly Festival and tours by global superstars like Elton John and Celine Dion.
The company announced across-the-board salary reductions for employees in April and had avoided layoffs, but the shutdown of the concert industry and the inability to generate any revenue as its buildings sit idle and its festivals and global tours continued to be postponed and canceled has forced the company to make painful staff cuts.
“We did not come to today’s decisions lightly,” AEG Presents chairman and chief executive Jay Marciano wrote in a follow up letter to staff. “During the last few months we kept our company intact to ensure that those of you who would be the most affected would have the best safety net we could provide. While it’s small solace, I see this as a testament to the culture that exists at AEG and the important role you have played in building this environment.”
This is a developing story and we will update this article as more information becomes available.