In order to stay afloat amid the coronavirus pandemic, live entertainment behemoth Live Nation announced that it has furloughed 20 percent of its staff in cost-cutting measures.
According to Billboard, the company revealed a $600 million cost-cutting package, which will affect 2,100 of Live Nation’s 10,500 employees. Back in April, the company first hinted at the furloughs, noting that “with the duration of current conditions globally, the company has launched a number of initiatives to reduce fixed costs and conserve cash.”
“As part of these cost reduction efforts, the company will implement salary reductions, with salaries for senior executives reduced by up to 50 per cent, and the company’s CEO voluntarily forgoing 100 per cent of his salary for the duration of the salary reduction program,” Live Nation said in a statement.
“Addition cost reduction efforts include hiring freezes, reduction in the use of contractors, rent re-negotiations, furloughs, and reduction or elimination of other discretionary spending, including, among other things, travel and entertainment, repairs and maintenance, and marketing.”
Already, Live Nation’s subsidiary Ticketmaster has announced that a quarter of its workforce has been furloughed.
In an investor earnings call earlier this month, Live Nation President and CEO Michael Rapino explained that the company saw a decrease in revenue during the first quarter of 2020, bringing the company’s debt to $4.85 billion. Last week, however, it was reported that Live Nation would be raising $800 million in a debt sale to use for “general corporate purposes,” along with plans to secure an additional $1.2 billion through note sales.
Rapino said that Live Nation would work to bring concerts fully back in 2021 by testing different measures, including drive-in concert tours and crowdless shows this summer.
Live Nation isn’t the only ticketing company to announce furloughs during this trying time; TicketSwap announced the reduction of 30% of its staff, StubHub furloughed 67% of its workers, and Viagogo announced cuts to its Ireland staff.