AMC Theatres has furloughed its CEO along with the rest of the company's 600 corporate staff. The company announced the news on Wednesday as it tries to stay afloat during the coronavirus pandemic.
The movie house chain said the effects of the coronavirus and the closing of its theaters "leaves AMC with no revenue, and substantial fixed costs that continue," so a furlough plan "is absolutely necessary to preserve cash and to ensure that AMC can reopen our doors once this health crisis has dissipated."
The world’s largest theater operator is planning to reduce hours and cut pay for corporate workers. Employees could work anywhere from zero days to four per week. However, the company said everyone affected by the furlough plan will continue to be considered employees and keep their health benefits.
Last week, AMC closed all of its 1,000 locations around the world. Its theaters in the U.S. will be shut at least for the next six to 12 weeks to comply with state, local and federal social distancing guidelines.
