SXSW 2020 was cancelled last week due to concerns over the spread of coronavirus. And now, as The Austin American-Statesman reports, the company behind the festival, SXSW LLC, has laid off “about a third of its 175 year-round employees.”

A SXSW spokesperson told them in a statement that the company “has been rigorously reviewing our operations, and we are in the unimaginable position of reducing our workforce” and that they were “planning for the future and this was a necessary, but heartbreaking, step.”

In an interview with The Wall Street Journal last week, SXSW co-founder and CEO Roland Swenson said that the festival’s event insurance did not cover a disease-related cancellation. “[We are] planning to carry on and do another event in 2021,” he said. “How we’re going to do that I’m not entirely sure.”