With no revenue, AMC Theatres furloughs entire Kansas City corporate HQ — even the CEO
With 600 movie theaters across the country closed, Leawood-based AMC Theatres has furloughed its entire corporate staff.
The move, announced Wednesday, means every corporate employee — including CEO Adam Aron — will have their working hours and pay cut. Some will work no hours with no pay.
As the coronavirus continued its spread, the company announced last week that it would close its more than 600 U.S. theaters. Subsidiary Odeon Cinemas Group, the largest movie theater operator in Europe, has also closed hundreds of locations.
“This leaves AMC with no revenue, and substantial fixed costs that continue,” spokesman Ryan Noonan said in a statement. “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.”
AMC employs some 400 people at its Leawood offices, according to the Kansas City Area Development Council.
Affected workers will retain their active employment status with the company, preserving their health benefits.
“As we all know, these are unprecedented times,” Noonan’s statement said. “AMC is doing everything possible to ensure that we can welcome back both our associates and our guests as our theaters reopen.”
