Hollywood's Creative Artists Agency is preparing to lay off 60 employees as the strikes led by actors and writers continue to disrupt the entertainment industry.
These cuts are expected to hit multiple departments and commence next week.
A source said the strikes' impact influenced the decision, although CAA had been evaluating staffing levels before the strikes began.
Before the writers' and actors' strikes, agencies were already grappling with business setbacks due to the pandemic and clashes with the Writers Guild over packaging fees.
There have been seismic shifts brought about by the rise of streaming in the television industry.
Earlier this year, United Talent Agency and Verve cut jobs.
During an earnings call, Endeavor's CFO, Ari Emanuel, noted the ongoing strikes are expected to cost the company approximately $25 million in revenue each month.
Emanuel said resolving the strikes will likely extend over months, not days.
He said: “Time and again, our industry has navigated change and now is no exception, as we adjust to new distribution models and technologies.
“There are real issues to work through and we continue to stand with our clients, advocate on their behalf and push for a resolution that protects their creative and commercial interests.”
Last year, CAA considerably expanded its workforce to 3,200 employees.
This was after acquiring ICM Partners in a deal valued at $750 million.
The agency's future ownership structure is also under discussion, with talks of selling a majority stake to French billionaire Francois-Henri Pinault.
This deal, reported by Bloomberg, is potentially on the verge of closing shortly.
The dual strikes by the Writers Guild of America and actors have presented another hurdle for local businesses tied to the entertainment sector following production halts at the onset of the pandemic.
