Lionsgate Lays Off Staff In Film Division
READ ASAP: CBN Disowns Recruitment Portal Seeking BVN Details
Lionsgate Motion Picture Group has laid off a dozen employees, about 3% of its workforce of approximately 400, following its recent release of John Wick: Chapter 4 and Gerard Butler thriller Plane. The move comes amid a string of layoffs, which have reduced the workforce by around 150 full-time employees or 10% of the company’s total over the past six months.
The restructuring follows a plan to “manage cost across the board including programming spend, marketing, as well as general and administrative expenses heading into 2024”, said CFO Jimmy Barge in a February earnings call.
The studio has a full slate, with new installments in franchises such as Saw, Expendables, and Dirty Dancing, and is preparing to release a prequel to Hunger Games, Ballad of Songbirds and Snakes, in November. The company’s stock has been on an upswing this year, with a recent close at $11.47 per share.
Lionsgate’s layoffs are part of a wider trend in the entertainment industry, which has seen multiple companies reduce their workforces as they balance content spending with the scrutiny of investors looking to maximize profits.
While Lionsgate’s layoffs are part of a plan to manage costs and prepare for a long-planned spinoff of premium cable brand Starz into a standalone company, the move is also designed to unlock more shareholder value for investors once the two firms are separated in September of this year.
Lionsgate is hoping to weather the current uncertainty in the industry and maintain its position as a major player, with its upcoming slate of films and long-term agreements with executives such as film division chief Joe Drake.
