Paradigm has permanently laid off 180 of its 600 employees, six months after those agency staffers were temporarily laid off due to the COVID-19 pandemic.
Paradigm chairman and CEO Sam Gores announced the move in a memo to staff.
“With disappointment and sadness, today we have informed the temporarily laid off employees whom we have not been able to reinstate that they will be transitioned to permanent layoff,” Gores said on Thursday.
“As you know, over the last six months, we have brought back as many of our temporarily laid off colleagues as we could; unfortunately, the profound effects of the coronavirus have continued to severely impact every aspect of our industry and our world for longer than we had even imagined six months ago. Consequently, we have had to examine every aspect of our business and make this difficult decision.”
In June, Paradigm secured an investment from Crescent Drive Media, a company owned by Gores’ brother Tom Gores, and recruited industry veteran Bruce Rosenblum as an investment adviser. The moves came as Paradigm grappled with a cash flow crunch exacerbated by the coronavirus crisis.
The memo from Gores thanked those affected for their service to Paradigm: “As these colleagues and friends begin their next chapters, we wish them only the best. As a company, we have enjoyed growth for several decades, so needless to say, this is a difficult day. Our values and our core are strong, and we will continue on a focused path, and we remain committed to improving.”
The memo concluded by saying, “I recognize that you and your former colleagues have carried a heavy burden this year, and I am grateful for all of your contributions. We all hope that someday soon, the live and filmed entertainment industry will safely and wholly return. As always, the company and I remain appreciative of your commitment and dedication.”
