25 March 2013

Cirque du Soleil cutting high production costs

Cirque du Soleil will be laying off 400 people primarily at its Montreal headquarters, the performers has revealed. In spite of raking in more than C$ 1bn in incomes from its 19 shows around the world last year, Cirque fell short to make a profit.

As the worldwide circus business approaches its 30th birthday, there are growing questions in its native Montreal about whether the troupe that transformed big-top entertainment has lost its means.

At least 50 per cent of the cuts will be occurring at the company's Montreal headquarters. The cuts represent almost nine per cent of the company's overall labor force. The move was attributed to high production costs for the circus business's dazzlingly intricate shows, which can run as much as $25 million.

The company additionally said it would be closing 4 of the 19 programs now running around the world. "We had have been much happier to inform you those programs weren't closing," Cirque du Soleil's spokeswoman, Renee-Claude Menard, informed The Globe and Mail. "But it's not an income issue, it's an expenditure issue."

Menard stated the business is in great monetary standing and that in 2012 was a record year for ticket sales. She stated the business made near to $1 billion in revenue and sold 14.2 million tickets in 2012. C

irque du Soleil, founded in the early 1980s by Guy Laliberte and fellow street entertainers, has yearly global profits of nearly $1 billion and employs some 5,000 people, in its around the world operations, of whom 2,000 are based in Montreal.

The strength of the Canadian dollar has actually been a trouble for the company, which incurs 95 percent of its costs in Canada but gets 95 percent of its profits elsewhere, especially in the United States, where numerous shows are at Las Vegas casinos.

A show based upon the songs of Michael Jackson and based upon the touring program "Immortal" is readied to open in a specially renovated theater at the Mandalay Bay hotel and casino in Las Vegas in the springtime.
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