Nearly 200 furloughed employees at Paradigm were notified on a conference call Thursday morning that they will be permanently laid off. CEO Sam Gores confirmed in a memo.

The news arrives following rumors of Casey Wasserman sealing the deal with a new-look Paradigm agency on the way.

Read Gores' memo to his staff below:

Dear colleagues,

With disappointment and sadness, today we have informed the temporarily laid off employees whom we have not been able to reinstate that they will be transitioned to permanent layoff. As you know, over the last six months, we have brought back as many of our temporarily laid off colleagues as we could; unfortunately, the profound effects of the coronavirus have continued to severely impact every aspect of our industry and our world for longer than we had even imagined six months ago. Consequently, we have had to examine every aspect of our business and make this difficult decision.

We are grateful for the work of the affected team members on behalf of the company and our clients — we thank each of them for their service to Paradigm.

As these colleagues and friends begin their next chapters, we wish them only the best. As a company, we have enjoyed growth for several decades, so needless to say, this is a difficult day. Our values and our core are strong, and we will continue on a focused path, and we remain committed to improving.

I recognize that you and your former colleagues have carried a heavy burden this year, and I am grateful for all of your contributions. We all hope that someday soon, the live and filmed entertainment industry will safely and wholly return.

As always, the company and I remain appreciative of your commitment and dedication.

Sam