While the world slowly begins to return to normal, many businesses are still working to stay afloat. It’s difficult for everyone as no one was prepared for a shut down of this size. Regardless of business size, owners are left with many challenging decisions to ensure their future. Event promoter and Coachella owner, AEG, has recently made a tough decision after suffering without live events these past few months.
“But we’ve simply never experienced times like these, in which our operations have come to a complete stop due to a force beyond our control.”
In order to save money and survive more dry months, AEG will reportedly go through with large-scale employee cuts starting July 1st. This news comes from an apparent email sent to all AEG staff from CEO Dan Beckerman. Having worked at AEG for over a decade, Beckerman has made the decision knowing these difficult times are not over. AEG Presents has taken a huge hit as their responsibility focuses on promoting festivals and concerts including Coachella and Firefly.
According to the report, the large-scale employee cuts will include layoffs, furloughs, and salary reductions. In addition, these cuts will affect all departments within AEG. In a followup letter to Billboard, AEG Presents chairman and chief executive Jay Marciano, stated that: “We did not come to today’s decisions lightly”. We can hope that AEG will rehire those let go once revenue is flowing in more consistently. Nonetheless, these cuts will hopefully ensure AEG can make it financially until more of the entertainment industry safely reopens.
You can read more about the decision, including the full memo from CEO Dan Beckerman here.