Ad agency Giant Spoon has been forced to lay off 20 percent of its headcount due to the impact COVID-19 is having on its experiential business, the company has confirmed.
The full-service shop, behind infamous events like Westworld and Game of Thrones-theme experiences that have taken SXSW by storm, said those who have been let go will get six months health care coverage and a severance package.
Giant Spoon still employees 175 people in NYC and LA.
The company said in a statement: "We are deeply saddened to have made the decision to reduce our full-time headcount. Our priority is on those we're parting with as we adjust our business in real time, our existing clients, and teams.
"The bottom line is the direct and widespread impact caused by the COVID-19 pandemic has done serious damage to our experiential business, which now consists of a core team including leadership, who are working to help clients find digital paths forward. There are no words to soften the pain inflicted on the people most directly affected by this situation."
These reductions are driven by the impact coronavirus is having on the experiential category as a whole and Giant Spoon’s events-focused clients specifically, who have been forced to halt production on several 2020 experiential projects.
Those on the inside stress this as a temporary setback and expects to rebound as the economy grows following the coronavirus pandemic.