EXCLUSIVE: Illuminated Verve agency has become the latest to face the havoc caused by the coronavirus pandemic that has halted business.
Sources said the strategy will be wage cuts, not layoffs. All seven partners will take the biggest pay cuts, and the percentage pay cut gradually decreases as it affects junior agents, based on experience and size of paychecks. There are no plans to fire agents, at this time.
The agency's trusted agency spent the past two weeks trying to cushion the blow and survive, looking at revenue and projections and giving a better estimate of when the business will return. Sources said the plan was aggressive and was based on the closure that lasted between three and six months. It is a difficult pill for officers to swallow, but is preferable to layoffs.
This memo was sent internally by the partners this afternoon:
In response to this unprecedented challenging time in our business, Verve has determined that cost reduction measures need to be taken across the enterprise.
Our most important goal is to preserve and protect our valuable Verve team, therefore, instead of imposing layoffs on employees, we have asked everyone to adhere to a pay cut; with partners taking the most aggressive reductions.
We have also reduced the hours for all attendees to adapt to the changing needs of our business.
We are grateful for the overwhelming understanding and support we have felt within our walls as we strive to protect our long-term investment in the health and prosperity of our company.
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