SXSW Lays Off 1/3 Of Staff After Coronavirus-Sparked Cancellation

AUSTIN, TX — In the wake of a cancellation of SXSW 2020 over new coronavirus fears, festival organizers said Monday they would be forced to lay off about a third of its full-time staff — about 58 employees.

The development comes after a local disaster declaration was declared by city and county officials that effected the first cancellation of the annual festival in its 34-year history. Last year's gathering drew more than 415,000 attendees, and generated a local economic impact of some $355 million, SXSW offficials previously revealed.

The respiratory ailment now known as COVID-19 is caused by a member of the coronavirus family that’s a close cousin to the SARS and MERS viruses that have resulted in outbreaks in the past.

Don't miss the latest coronavirus updates from health and government officials in the Austin area. Sign up for Patch news alerts and newsletters for what you need to know daily.

“Due to the City of Austin’s unprecedented and unexpected cancellation of SXSW 2020 events in March, SXSW has been rigorously reviewing our operations, and we are in the unimaginable position of reducing our workforce,” a SXSW spokesperson told KUT, the local National Public Radio affiliate, in a statement.

The day after the festival cancellation was announced by government officials, SXSW officials moved to fill the void by urging residents to support a number of organizations to support small businesses reliant on the annual event.

"Yesterday it was announced that the City of Austin had cancelled SXSW for the first time in its 34-year history," SXSW wrote on Saturday. "Since then the incredible Austin community has come together to support the many creatives, venues, production companies, service industry staff, and other small businesses that rely so heavily on the increased business that SXSW attracts."

Related stories:

• Coronavirus Forces SXSW Cancellation: Here's Why
• Austin Bans Events With 2,500-Plus Attendees Over Coronavirus

To help mitigate local losses, SXSW suggests supporting three organizations while sharing the resources with others to mitigate losses resulting from thet festival's cancellation:

• Stand with Austin: Austin Community Fund has created a unified place for people to donate to support the individuals and small businesses impacted by the cancellation of this year’s SXSW.
• Banding Together ATX: Artists and workers have incurred expenses to get to and stay in the “Live Music Capitol of the World” during the next few weeks. Some may have been reimbursed or refunded but many folks are out thousands of dollars. Our goal is to keep as many artists as possible coming to Austin. We also want to assist re-homing events that are losing their venues.
• Southern Smoke: Southern Smoke has created an Austin-specific fund to help specifically those in the food and beverage industry.

"We will continue to work hard to bring you the unique events you love," SXSW officials said in a prepared statement. "Though it’s true that our March 2020 event will no longer take place in the way that we intended, we continue to strive toward our purpose — helping creative people achieve their goals."

>>> Read the full story at KUT