EXCLUSIVE: A3, one of the top talent representation agencies, made a significant move on Friday by laying off 10 employees. This includes seven assistants and three coordinators. It’s a clear indication that the ongoing SAG-AFTRA strike is taking its toll on the industry, and more layoffs are expected to follow. As Hollywood production comes to a standstill due to the strike, agencies and management companies are forced to make tough decisions, especially those heavily reliant on film and scripted TV revenue.
The cost-cutting measures began when the WGA strike started on May 2. Verve, a literary-focused agency, had to let go of agents and support staff. APA also had to lay off some assistants, and most agencies reduced expenses, including travel and entertainment costs. Some even implemented temporary salary cuts for senior agents.
A3, led by company chairman Adam Bold, took similar steps to mitigate the impact of the strike. They reduced expenses, suspended the company’s 401K match, and even had top agents and executives voluntarily take a salary cut. However, with no revenue coming in and no end in sight, Bold acknowledges that more layoffs are inevitable. He has been personally funding the payroll out of his own checking account but can’t sustain it indefinitely.
Bold and his management team are currently evaluating their options, but he admits that the choices they face are gut-wrenching. Ultimately, their goal is to ensure the company’s sustainability, even if it means letting some employees go. Bold remains hopeful that these departures won’t be permanent and that when things return to normal, they can rehire the talented individuals they had to let go.
Unfortunately, A3 is not alone in this situation. Other agencies are also considering similar measures as the strike continues to impact the industry. The Covid-related production shutdown has already led to furloughs and layoffs, and the labor dispute shows no signs of resolution in the near future. This means that more difficult decisions lie ahead for agencies in the coming weeks.
The entertainment industry is facing unprecedented challenges, but it’s important to remember that it’s a resilient industry. While the road ahead may be tough, there is hope that with strategic cost-cutting measures and a resolution to the strike, agencies like A3 can weather the storm and come out stronger on the other side.
