Paradigm's Coronavirus Layoffs Panned by Music Industry

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'This is really just greed,' a former Paradigm employee says of agency's coronavirus layoffs

and has spent significant money on acquisitions in recent years. In 2019, the company took full control of European agency Coda and boughtMarty Diamondtold staffers on an agency-wide call that temporary layoffs would be enacted in the coming days. Sources estimate that more than 200 agents, assistants and staffers would be cut as the live events business feels the impact of the spread of coronavirus.

Laid off employees were not given any severance payouts, were told their clients would remain with the agency and weren't paid outstanding commissions, sources tell-- although many of the agents at Paradigm operate on salaries and not commissions. Paradigm also laid off contract employees and suggested aforce majeure

provision requires a 90-day notice, indicating legal action for breach of contract is likely. Staff that remained at the company was required to take a pay cut. "This isn't about protecting cash flow, this was about protecting profits," said one former employee who did not want to share their name."This is really just greed."

The move stands in contrast to how UTA is handling the financial crisis created by the spreading COVID-19 pandemic. There, CEO

 

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