Entertainment firm Cirque du Soleil is axing greater than 3,000 jobs in a restructuring after the coronavirus pandemic worn out its revenues.
However the Canada-based group – identified for its reveals in Las Vegas and world wide – mentioned it aimed to rehire a “substantial majority” of those workers as soon as lockdowns are lifted.
It mentioned it was submitting for cover from collectors in Canada whereas it develops a plan to restart its enterprise.
The firm mentioned it was taking motion “in response to immense disruption and compelled present closures because of the COVID-19 pandemic”.
Montreal-based Cirque briefly suspended its productions in March due to the outbreak.
It is now terminating 3,480 workers of the greater than 4,000 who have been furloughed at the moment – the latter quantity representing 95% of its workforce.
The firm mentioned its restart plan included “the intent to rehire a substantial majority of terminated employees, business conditions allowing, once and as mandatory shutdowns are lifted and operations can resume”.
It added that provided that its resident reveals at Las Vegas and Orlando have been anticipated to renew earlier than the remainder, artists in its residents reveals division weren’t affected.
Under the restructuring, current shareholders have agreed to take a position $300m and take over Cirque’s liabilities – together with to ticketholders affected by cancellations of the reveals – whereas a Quebec authorities physique will present $200m in debt financing.
The deal can even see current secured collectors take a 45% stake within the restructured firm.
There will likely be a $20m fund “to provide additional relief to impacted employees and independent contractors”.
Daniel Lamarre, chief govt of Cirque du Soleil Entertainment Group, mentioned: “For the previous 36 years, Cirque du Soleil has been a extremely profitable and worthwhile organisation.
“However, with zero revenues because the pressured closure of all of our reveals because of COVID-19, administration needed to act decisively to guard the corporate’s future.”
The Las Vegas reveals which have been cancelled throughout the pandemic included “O” at the Bellagio, and “The Beatles LOVE” at the Mirage, and “Michael Jackson ONE” at Mandalay Bay.
Cirque du Soleil reveals in different areas within the US in addition to Canada, Spain, Israel, Germany and Australia have been additionally suspended.