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Written by on May 6, 2020

Another tragic day for the live event industry.

In heartbreaking news, Insomniac, one of the world's leading event companies and the organizers of EDCBeyond Wonderland, and more, today announced that they have been forced to furlough 50% of the company's workforce due to COVID-19 concerns. 

As the stay-at-home ordinances continue to be prolonged, the live event and entertainment industry have been struck with a harsh new reality. According to The New York Times, economists surveyed by MarketWatch expect a report, which the Labor Department will release on Friday, to show that U.S. payrolls fell by 22 million jobs this last month. 

Insomniac founder and CEO Pasquale Rotella told Billboard the decision did not come easy, but it became a necessary action to stay afloat during these troubling times. “Insomniac made the difficult but necessary decision to furlough certain employees while we are unable to produce our shows,” he said. “It is our full intention to bring those team members back on board once events are allowed to occur again.” Furloughed employees, however, will still be able to retain all their medical benefits.

For businesses across the world, the effects of the pandemic have been devastating, but they have been especially daunting for nightlife, an industry that revolves around social interaction. The future of the industry is still unknown, being that it was one of the first to be shut down and will most likely be among the last to reopen. However, companies like Insomniac have opted to postpone major festivals in lieu of announcing a full cancellation. EDC has been pushed back to October, and Rotella and his team are currently going through the painstaking process of dealing with refunds. 

View this post on Instagram

Refunds are Coming!😎🍦✨ I know many of you who are unable to attend our rescheduled event dates have been asking about the status of refunds. I want to assure you that our team is working tirelessly to verify all orders and process your refunds as quickly as possible. For those of you who are able to hold on to your tickets for our events, I want to thank you, your support means everything. For those of you who have requested refunds for Beyond Wonderland SoCal 2020 and have not yet received them, Front Gate will begin processing them by May 7th. For those who have requested a refund for EDC Las Vegas, those refunds will begin processing in about 10 business days. Please bear with us. We’ve had to reschedule hundreds of club shows, concerts, raves and festivals across the country and around the world. With limited staff working remotely, the verification and refund process has taken longer than I would have liked, and we appreciate all your patience and continued support. Each one of your ticket orders is unique, with its own set of requests, and has to be handled individually to make sure you are refunded correctly. I am continuing to work on making this faster for you and improve our communication. If you’ve been tuning into Insomniac REWIND and the Rave-A-Thons on our YouTube and Twitch channels, I hope you’re enjoying reliving some of your favorite memories from past festivals. I love seeing you all turn up every week for the live broadcasts. The team at Insomniac is burning the midnight oil working on ways to keep our community together during this time apart. I miss seeing you on the dance floor and can’t wait until we are all together again very soon. Stay Strong, Stay Safe and Stay Positive. ❤️ - Pasquale

A post shared by Pasquale Rotella (@pasqualerotella) on

During times like these, it's important to keep these employees, who have brought some of your favorite memories to fruition, in our hearts. Both financial and emotional support is imperative at the moment, and we urge you to donate to charitable foundations like MuisCares to help. While on quarantine, you can also tune into Insomniac's digital festival coverage, including the EDC Las Vegas Virtual Rave-A-Thon,which will be hosted from May 15th to 17th.  


Facebook: facebook.com/insomniacevents
Twitter: twitter.com/insomniacevents
Instagram: instagram.com/insomniacevents

Originally appeared - https://edm.com/industry/insomniac-forced-to-furlough-50-of-its-workforce-due-to-covid-19-concerns