Celebrity PR Layoffs Loom as SAG-AFTRA Strike Hits the Agency Community
The ongoing strike by the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) has had severe repercussions on the public relations (PR) firms representing actors and celebrities. With actors barred from doing promotional press and engaging with media, many have decided to go on "hiatus" from their publicists, resulting in a significant decline in revenue for midsize PR agencies.
During a Zoom meeting between Hollywood's PR firms and SAG-AFTRA representatives, publicists expressed their distress over the strike's impact on their businesses. However, SAG-AFTRA remained firm in its stance, indicating that the strike's terms are essential for the well-being of actors and their mission. The Alliance of Motion Picture and Television Producers' refusal to return to the negotiating table was also criticized.
While some boutique PR firms are just managing to cover their overhead without laying off employees, the consensus among midsize firms is that they can only survive until September or October under the current circumstances. The lack of work during the strike has put the PR community in a dire situation, with some firms already experiencing an 80 percent decrease in revenue compared to pre-strike levels.
The strike has highlighted the challenges faced by PR firms, with the middle-sized ones particularly vulnerable during tough times. Owners of such firms emphasized that the success in the movie PR business often depends on either staying extremely small or becoming part of a larger organization. PR professionals have expressed their support for the strikes, acknowledging the importance of fair compensation for actors, but they also emphasized the impact on those outside SAG-AFTRA.
While the strike has severely affected small and midrange firms, even larger PR agencies are feeling the strain, with some likening the situation to the difficulties faced during the COVID-19 pandemic. Many PR professionals are eager to find a resolution and hope that negotiations will lead to a solution that accommodates their concerns as well.
As the strike continues, the fate of the PR community remains uncertain. Hollywood's PR firms are keen to work with SAG-AFTRA to find a way forward, seeking to limit the damage caused by the shutdowns and come to agreements that can benefit all parties involved.
