Paradigm Chairman/CEO Sam Gores issued a letter to remaining staff Monday evening in an effort to show more "compassion" to employees affected by temporary layoffs and reduced pay.
As Deadline reported, the new lifelines Gores announced to the company include a $1.1m relief fund for temporary laid off employees, extension of health care and interim financing for the agency, providing security for the company going forward.
Gores also declared he would forgo his salary for the remainder of the year, and apologized for the lack of compassion in his original decision and message.
As you may recall, Gores made headlines with his swift action in the early stages of the coronavirus pandemic, issuing temporary layoffs to over 200 employees and 50% pay cuts to much of the staff via a blindsiding companywide conference call. Last week, agent Debbee Klein issued a blistering lawsuit aimed at Paradigm and Gores in response to the way Gores handled the situation.
Read the memo below:
Dear Colleagues,
I am committed to improving our flow of communication as we weather this uncertain time. The difficult and urgent actions we took on March 20th were the hardest of my 37-year career. Paradigm’s great strength is its enormously talented staff. It always has been and always will be. The vital and significant actions we took, though necessary for the health of the company, were hard and painful. And while immediate action was required, I realize that the way the message was conveyed to you lacked compassion and made you feel alienated from Paradigm.
You are part of this team because we believe in your talent, and we hope that you will be the people who will help build Paradigm’s future after the COVID crisis. From the beginning, we have considered these layoffs temporary and it bears repeating that our intention is to bring as many of you back as possible.
Over the past weeks, we have been working to mitigate the effects of these temporary layoffs and provide extended benefits, comfort, and assistance as we prepare for this pandemic to end and go back to work as a community at the agency I’m proud to call my home.
The coronavirus has affected almost every business in the world and certainly our industry. When months of film and television productions, concerts, tours, and festivals were cancelled or postponed overnight, every aspect of our business was dramatically impacted. I thought you’d like to know about several actions Paradigm has taken to ensure that the company remains on solid ground.
I am deeply sorry about the financial impact this crisis has had on so many of our colleagues, friends, and families as we confront one of the most urgent health and economic challenges of the modern era.
I’ll contact you again on or before Friday with more information about the Employee Relief Fund.
Stay safe, stay well, and we’ll continue to be in touch and keep you informed regarding our efforts on your behalf.
Warmly and with great respect,
Sam Gores, Chairman & CEO
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