Live entertainment giant AEG will enact large-scale employee cuts, including layoffs and furloughs, starting on July 1st. News of the decision came in an email sent to employees by AEG chief executive officer Dan Beckerman.

The cost reduction strategy arrives as a response to the ongoing COVID-19 pandemic that has effectively halted all live events and large gatherings across the globe. Back in March, live entertainment companies like AEG and Live Nation released a joint statement postponing all events until the end of the month. As March came and went, however, it became clear that live events would be on hold indefinitely. While AEG had initially avoided layoffs by reducing salaries across the board, the global impact of the health crisis eventually caught up with the company.

Related: Live Nation CEO Michael Rapino Discusses Drive-In Concerts, Industry Trends Amid Concert Hiatus

“We did not come to today’s decisions lightly,” said AEG chief operating officer Jay Marciano in a follow-up statement, according to Billboard. “During the last few months we kept our company intact to ensure that those of you who would be most affected would have the best safety net we could provide. While it’s small solace, I see this as a testament to the culture that exists at AEG and the important role you have played in building this environment.”

AEG is not alone in this predicament, as the Live Nation subsidiary Ticketmaster announced widespread furloughs of its North American workforce back in April. As the economic impact of COVID-19 becomes more apparent, one could expect other companies to follow suit if they haven’t already.

[H/T Billboard]