Creative Artists Agency is prepping a round of layoffs to reduce staff numbers as the Hollywood strikes wear on.
According to reports, around 60 people will be impacted across the agency. Layoffs are targeted for August 15, but could happen any time within the next few days as the news makes its rounds, sources report. Staff reductions are aimed at trimming each department and come around 18 months after the CAA acquisition of ICM Partners. ICM agents were given one-year CAA contracts at the time of the merger.
Sources say these cuts are not related to the acquisition and ICM agents were not targeted anymore than CAA agents. CAA has diversified its representation beyond just film and TV to include sports, music/touring, books, and other departments not impacted by the ongoing strikes. The company is estimated to have around 3,200 employees working across 25 countries.
The move comes as French billionaire Francois-Henri Pinault is said to be interested in acquiring a majority stake in the talent agency. “The talent agency, backed by private equity firm TPG, could fetch a valuation of at least $7 billion,” sources told Fortune when the deal came to light earlier this year.
CAA offers talent management services similar to rivals WME and United Talent Agency, backed by funds managed by a private equity firm. TPG acquired a 35% stake in CAA in 2010 before boosting its ownership to 53% in 2014 to take control of the business at a $1.1 billion valuation.
The Pinault deal would see the French billionaire expanding his reach beyond the luxury businesses that made them rich. Pinault is the biggest shareholder in Kering SA—owner of brands like Gucci and Bottega Veneta. Pinault’s holding company Artemis also grants them control of assets like the Christie’s auction house and the Chateau Latour Bordeaux vineyard. Adding the behemoth talent agency to the list of assets is just one small checkmark for Pinault.