Prospective operator of Cork events centre lays off 2,000 staff

Concerts and events giant Live Nation, the would-be operator of Cork’s long-mooted events centre, has laid off a fifth of its staff as it grapples with a decimation of its finances due to Covid-19.

More than 2,000 of its 10,500 staff have been furloughed as the live events behemoth deals with the cancellation and postponement of more than 6,000 of its scheduled shows.

Live Nation, which is valued at just under €8bn, announced it was looking to raise $1.2bn through a corporate bond sale, which it said it would pay back to creditors by 2027 with a 6.5% interest rate.

The funds raised will be used for "general corporate purposes", the firm said.

Shares in the company have plummeted more than 28% in the past year, adding to the tough financial period ahead.

Cork City Council has received no communication from Live Nation that it does not intend to plough ahead with the €80m events centre in Cork, which it is slated to operate once built.

A withdrawal of a legal challenge against the €50m State funding package to help build the Cork events centre last month looked to have removed the last obstacle before the project could proceed.

However, the perilous state of Live Nation's immediate and medium-term future will raise questions about its commitment to the project.

Revenues fell 20% in the first quarter of the year, Live Nation said.

Chief executive Michael Rapino said regarding the firm's financial results for the first quarter: "Despite these challenging times, we continue to have full confidence in the long-term supply and demand dynamics of the live concerts industry, Live Nation’s leadership position and our business model’s ability to successfully deliver profitable growth and shareholder value."

The company did not respond to the Irish Examiner's query about the events centre at the time of going to press.