USA Cycling has laid off or furloughed more than 30% of its 70-person workforce amid a profound revenue downturn because of the pandemic, the Sports Business Journal reported.
CEO Rob DeMartini declined to provide a precise breakdown of personnel actions, but said the majority were furloughs set to last between two and six months depending on the duration of the crisis and the workers’ specific roles.
All will be provided with health insurance coverage for 90 days, DeMartini told sportsbusinessjournal.com.
The Colorado Springs-based NGB has already canceled 120 racing events since March 1, and does not project any racing until July at the earliest. While the nonprofit has year-round sponsorship support, much of its income is generated directly by events.
USA Cycling reported $14.9 million in revenue in 2018, with about two-thirds coming from membership, sanctioning, camps and clinics. Cycling is the first Olympic NGB to announce layoffs.
Earlier this week, the USOPC told Congress that individual sports bodies will lose $150 million in revenue related to domestic cancellations alone, and that total losses from the loss of domestic events and the Tokyo 2020 postponement could reach $800 million across the U.S. Olympic movement.