Lionsgate was hit with layoffs on Thursday as 50 staffers, or approximately 5% of its workforce, were let go.
The company had endured layoffs earlier this year as 5% of workers were notified their jobs were eliminated, representing a total headcount reduction of 13% over the past nine months. These additional layoffs are part of corporate cost-cutting measures amid an “industry environment characterized by unprecedented change and disruption,” Lionsgate’s CEO Jon Feltheimer said in a note to staff.
“We are continuing to adapt our organization to these changes in order to compete successfully,” Feltheimer wrote in the memo. “As part of this process, we separated Lionsgate and Starz into independent standalone companies earlier this year, and we are continuing to monetize non-core assets, re-allocate our resources to growth areas of the business and reduce costs.”
He added, “These are difficult decisions impacting colleagues with whom we have collaborated for years and who have made valuable contributions to Lionsgate’s success. We will make their transitions as smooth as possible.”
In Thursday’s memo and during the company’s most recent earnings call, Feltheimer acknowledged some of the headwinds the company has endured while preparing to separate from Starz but noted “we are taking a number of important steps toward returning to solid growth in fiscal 2027.” Feltheimer said these cuts will “substantially complete” Lionsgate’s recent belt-tightening efforts.
“Though we may continue to fine-tune the organizational structure of individual departments from time to time, today’s headcount reduction will substantially complete our year-long process of repositioning the company for growth,” Feltheimer said.
He concluded by looking optimistically toward the future. Already this year, Lionsgate has released the “John Wick” spinoff “Ballerina” and dystopian thriller “The Long Walk” to mixed box office results. On the horizon, there’s Aziz Ansari’s comedy “Good Fortune,” the third “Now You See Me” installment and page-to-screen adaptation “The Housemaid” with Amanda Seyfried and Sydney Sweeney.
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“Our core strengths remain intact: one of the largest and most valuable film & television libraries in the world, a portfolio of premium franchises, deep content pipelines and a talented and entrepreneurial workforce second to none,” Feltheimer wrote. “Working together, I am confident that we will continue to position ourselves for solid and significant growth in the years ahead.”
From Variety US