Verve Instituting “Company-Wide Cost-Cutting Measures” Focused On Pay Cuts, Not Layoffs

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EXCLUSIVE: The lit agency Verve has become the latest to confront the havoc wrought by the coronavirus pandemic that has brought the business to a screeching halt. Sources said that the strategy wi…

has become the latest to confront the havoc wrought by the coronavirus pandemic that has brought the business to a screeching halt.

Sources said that the strategy will be pay cuts, not layoffs. The seven partners will take the largest salary cuts, and the percentage salary trims gradually decreases as it hits the junior agents, based on experience and size of paychecks. There are no plans to lay off agents, at this point. The cuts are across the board.

The agency braintrust spent the past two weeks trying to cushion the blow and survive, and looking at revenue and projections and giving a best guess estimate of when the business will return. Sources said the plan was aggressive and was based on the shut down lasting a possible three to six months. It is a hard pill for agents to swallow, but preferable to layoffs.

Our most important goal is to preserve and protect our valuable Verve Team, therefore instead of imposing employee lay-offs, we have asked everyone to adhere to a salary reduction; with the Partners taking the most aggressive reductions.We are grateful for the overwhelming understanding and support we have felt within our walls as we strive to protect our long-term investment in the health and prosperity of our company.

 

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