Cineplex Executives to Take 80 Percent Pay Cut Due to Coronavirus Pandemic
The company's 165 theatres have been temporarily closed to slow the spread of COVID-19 in Canada
Published Mar 23, 2020After Canadian theatre chain Cineplex temporarily closed all its locations to slow the spread of COVID-19, the corporation has now announced that its executives will be taking an 80 percent pay cut to avoid mass layoffs.
According to The Hollywood Reporter, Cineplex's 13,000 employees will be given a series of pay-cutting measures, ranging from temporary layoffs and one-time payouts for part-time employees to pay cuts for full-time staff in order to avoid permanent layoffs. Pay cuts will be on a sliding scale depending on the salaried employees' job titles and pay grades, reaching up to 80 percent for the company's highest-paid employees.
Said Cineplex in a statement to THR, "From the onset of the COVID-19 pandemic, our primary focus has been the health and safety of our employees and guests. With the temporary closure of our network of entertainment venues and the majority of our full-time employees working from home, our focus was able to shift to safeguarding the long-term stability of our business and our readiness to return once the crisis has passed."
On March 16, Cineplex announced that its 165 movie theatres across Canada will be closed until April 2. It is yet to be announced whether business will resume on that date or the closures will be extended.
Cineplex was purchased by British company Cineworld last December for $2.8 billion. Some of the cost-cutting measures are so Cineplex can close the deal by June 30.
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