Lionsgate reduces workforce by 50 employees as cost-cutting measures continue
Lionsgate Announces Job Cuts Amidst Industry Changes
In a move towards corporate efficiency and cost-cutting, Lionsgate, the studio behind popular franchises like John Wick and The Hunger Games, has announced job cuts affecting approximately 8% of its workforce this year, with an additional 5% of employees set to be notified that their positions will soon be eliminated.
The news was broken in an internal email from CEO Jon Feltheimer, who outlined the changes and the reasons behind them. According to the email, the job cuts are a result of the end of the Peak TV era and the impact of the 2023 Hollywood strikes, although these specific factors were not explicitly linked in the email.
The email also stated that Lionsgate is adapting to industry changes and competition, and is monetizing non-core assets and reallocating resources to growth areas of the business. The company's core strengths, including one of the largest and most valuable film and television libraries in the world, a portfolio of premium franchises, deep content pipelines, and a talented and entrepreneurial workforce, remain intact.
This latest round of job cuts is part of a year-long process of repositioning the company for growth. Over the past year, Lionsgate has reduced its headcount by 13 percent. The job cuts are in line with similar downsizing at rival media companies in Hollywood.
Recent changes at Lionsgate include the split of its studio business from Starz to open up strategic possibilities in a consolidating entertainment industry. There have also been rumours of a potential deal for Lionsgate with Legendary Entertainment, the studio behind Dune, Godzilla, and Minecraft Movie, but no official announcements have been made.
Potential companies interested in a near-term acquisition of Lionsgate could include large media conglomerates or streaming services looking to expand their content libraries, such as Netflix, Amazon, Disney, or Comcast. However, no specific offers or confirmed interested buyers are currently reported.
The email concluded by expressing confidence in the company's ability to continue positioning itself for solid and significant growth in the years ahead. Feltheimer had previously discussed cost-cutting as part of the studio's growth strategy during an Aug. 7 earnings call.
As Lionsgate navigates these challenging times, it remains committed to its mission of delivering high-quality entertainment to audiences around the world.
