The Madison Square Garden Company, the parent company of MSG Entertainment, is the latest major live events entity feeling the serious financial bleeding from the ongoing pause of all indoor concert events heading into August.
Last week, the New York Post reported that MSG Entertainment plans to lay off roughly 350 of its employees—about one-third of its total workforce—while confirming the company has canceled all 2020 dates for the annual “Christmas Spectacular” holiday show run at the nearby Radio City Music Hall for the first time since 1933. The annual holiday residency was originally scheduled to run from November 6th, 2020 to January 3rd, 2021.
The report also confirmed MSG Entertainment’s sister company, MSG Sports (which owns the New York Knicks and New York Rangers) will also cut up to 50 full-time jobs—roughly 15% of its corporate staff. The update comes after the famous Manhattan arena has already laid off a number of its part-time operations employees back in March and May. All laid-off employees for the MSG Company will receive severance and benefits packages, as well as outplacement support to help with their transition into another job outside of the live events industry.
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“This was a difficult decision for both companies, as we know that our success rests on the strength of our people, who consistently set the industry standard for excellence and professionalism,” a representative for the two companies said with the report. “While we believe this is a necessary step to protect the long-term future of our businesses, we continue to actively pursue solutions that will allow us to safely reopen our doors, so we’re able to bring as many employees back as quickly as we can, once a return date for live events is established.”
The last concert event to take place at Madison Square Garden was that of The Brothers 50 all-star anniversary tribute to The Allman Brothers Band back on March 10th.
Live events promotion giant AEG was also forced to let go or furlough a large number of its employees earlier this year, citing the lack of any income with no concerts, tours, or festivals planned for the remainder of 2020.
[H/T New York Post]