It’s officially a trend: Cinemark CEO Mark Zoradi and the theater chain’s board of directors are following executives from Disney, which is cutting salaries, and AMC Entertainment, which furloughed its entire staff including CEO Adam Aron, to save cash during the coronavirus pandemic.
In the case of Zoradi, neither he nor the directors will draw a salary for the foreseeable future. Other U.S. corporate employees will see deep cuts in compensation of at least 50%. Some have voluntarily agreed to take even steeper cuts than were mandated. All employees maintain full benefits and are working reduced hours, though some have also volunteered to continue with a full workload.
“These temporary measures are being taken in an effort to retain as many employees as possible and ensure Cinemark is in a position to reopen and welcome back theatre employees when this pandemic subsides,” Zoradi said. (Read the full statement below.)
The economic crisis caused by the coronavirus has hit the media and entertainment sector hard, no area worse than exhibition. Theaters are shuttered, generating no revenue at all while companies still have lease and other financial obligations and find their liquidity stretched.
Zoradi said, “Cinemark’s priority as it navigates through this uncertainty is to ensure that the company will be able to once again open theaters and employ our global team members.”
Here’s Zoradi’s full statement:
The dramatic global impact of the Coronavirus (COVID-19), has created a turbulent environment that is changing daily and dramatically affecting everyone. During this time, I am most concerned about the impact this unprecedented situation has had on our Cinemark team members and their families.
Currently, our theaters across the globe are closed, and it is uncertain when they will be able to re-open. We are not generating any revenue while theaters are closed, yet still must meet financial and contractual obligations.
Cinemark’s priority as it navigates through this uncertainty is to ensure that the company will be able to once again open theaters and employ our global team members. I look forward to the day in the hopefully not-to-distant future when the Cinemark team can once again welcome guests to enjoy the immersive moviegoing experience we offer at our theaters.
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.