Management and production shingle the Firm fired 9% of its employees on Friday.
Move comes seven months after its absorption of Artists Management Group. The largely administrative cuts reduce the company staff from some 200 last May to roughly 180.
“We’ve had seven months to review the company’s operations,” said chief operating officer David Baram. “These cuts are strategic, stemming from a consolidation of the companies businesses. There are no plans for additional cuts.”
Baram said that some “junior managers” will also be leaving as a result of the downsizing, including managers Brad Schenck, Adam Asherson and Corey Bobker. Most managers are expected to take their core clients with them to start new businesses elsewhere.
The Firm has been one of the more entrepreneurial management companies in Hollywood, branching out into nontraditional representation areas by forming joint ventures with the U.K.’s Virgin Group and Build-A-Bear Workshops and acquiring outright the Pony sneaker brand, which has struggled to gain a toehold in the crowded apparel marketplace.
Complicating matters, popular music acts like Korn, which it represents, have not been touring much, and all music acts are facing a recording industry with declining sales numbers overall.