Layoffs hit Lionsgate as 50 employees are let go
Lionsgate, the media company renowned for its diverse film and television library, has revealed a series of changes to adapt to the current industry environment. These changes include layoffs, resource reallocation, and the monetization of non-core assets.
In a note to staff, Lionsgate's CEO, Jon Feltheimer, acknowledged the headwinds the company has faced and expressed optimism about its future. He stated that the company is taking 'a number of important steps toward returning to solid growth in fiscal 2027.'
Thursday saw Lionsgate implement layoffs, affecting approximately 5% of its workforce. This round of layoffs represents a total headcount reduction of 13% over the past nine months for the company.
Feltheimer wrote in a memo that Lionsgate separated Lionsgate and Starz into independent standalone companies earlier this year. The company is continuing to monetize non-core assets as part of its cost-cutting measures, but no details about these assets were given.
The layoffs are part of Lionsgate's efforts to reduce costs in response to an 'industry environment characterized by unprecedented change and disruption.' Feltheimer stated that the cuts will 'substantially complete' Lionsgate's recent belt-tightening efforts.
Lionsgate has released 'Ballerina' and 'The Long Walk' this year, with mixed box office results. Despite the challenges, the company's core strengths remain strong. Lionsgate boasts one of the largest and most valuable film and television libraries, a portfolio of premium franchises, deep content pipelines, and a talented workforce.
Looking ahead, Lionsgate has several upcoming releases. Aziz Ansari's comedy 'Good Fortune', the third 'Now You See Me' installment, and 'The Housemaid' with Amanda Seyfried and Sydney Sweeney are among them.
Feltheimer is confident that by re-allocating its resources to growth areas of the business, Lionsgate will continue to position itself for solid and significant growth in the years ahead. He emphasized that the company is adapting its organization to compete successfully in the ever-changing media landscape.
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