As theatres remain closed during the coronavirus pandemic, AMC Theatres said on Wednesday (25) it was furloughing all corporate staff including CEO Adam Aron.
No corporate employee is being laid off and they will keep all health benefits but will work reduced hours at reduced pay, or no hours at no pay “for the hopefully short period of time when AMC’s theatres are all closed.”
Last week, AMC announced it was closing its 661 US theatres, which meant all 1,000 AMC and Odeon theatres around the world are closed temporarily during the pandemic.
The statement appears below:
Last week, AMC announced that because of the coronavirus outbreak we were closing all of our more than 600 U.S. theatres, which means that all 1000 AMC and Odeon theatres around the world are now closed, and will be closed for the immediate future.
This leaves AMC with no revenue, and substantial fixed costs that continue. At this time, AMC is not terminating any of its corporate employees, however, we were forced under the circumstances to implement a furlough plan, which is absolutely necessary to preserve cash and to ensure that AMC can reopen our doors once this health crisis has dissipated.
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. This action impacts every corporate AMC employee, including all those at the highest executive levels and including AMC’s chief executive officer.
All the furloughed corporate AMC associates will retain their active employment status with AMC, including all health benefits.
As we all know, these are unprecedented times. AMC is doing everything possible to ensure that we can welcome back both our associates and our guests as our theatres reopen.