As has been documented pretty regularly on this site and in the media over the last few weeks, the theatrical distribution business has been completely hammered by the COVID-19 (coronavirus) pandemic. Theaters all around the world have shut down for an indefinite amount of time, as regulations remain in place to prevent large numbers of people from gathering. This has led to unprecedented action by exhibitors attempting to keep their businesses afloat during this time, including from one of the largest chains in the world, AMC Theatres.
According to Deadline, the cashflow issue has gotten to the point where AMC Theatres needs to make some major changes at the corporate level, which means the company has now begun its furlough plan for employees. No, we’re not talking about the day-to-day workers at the theater-level. We’re talking about the corporate workers at the AMC headquarters in Kansas.
The report claims that 600 employees have been furloughed, meaning they’ll receive full-time status (including health benefits) but will work reduced hours for reduced pay.
“The furlough plan calls for reduced working hours at reduced pay, or no working hours at no pay, for the hopefully short period of time when AMC’s theatres are all closed,” the theater chain said in a statement. “This action impacts every corporate AMC employee, including all those at the highest executive levels and including AMC’s chief executive officer.”
The statement continued, “All the furloughed corporate AMC associates will retain their active employment status with AMC, including all health benefits.”
Yes, you read that right, even the CEO of AMC Theatres is being furloughed, in an attempt to keep the business running when there’s no money coming in and no realistic date for when the doors of the theaters will reopen.
AMC originally announced that all of its 1000+ locations around the world would cease operation for at least six weeks and up to 12 weeks. However, since then, it appears that the 12 weeks option is more likely, and with Warner Bros. delaying June’s “Wonder Woman 1984,” the idea that this shutdown could last more than 12 weeks is becoming a more realistic idea.