Lionsgate is laying off 15% of its motion picture crew, citing the impact of the COVID-19 pandemic.
Joe Drake, the president of the film conglomerate, informed staff about the cuts on Thursday. One source said layoffs would affect about 15% of parts. Lionsgate has about 450 employees.
“While our business is fundamentally strong, we can’t avoid the ongoing COVID crisis affecting us like so many other studios,” Drake said in a note. for employee. “These requirements for our business require us to accelerate changes to our operations and our strategic plan. And today, in response to the challenges and opportunities that lie ahead, we begin to implement the reorganization of the Film Group around four globally integrated verticals. This means that individuals in the MPG will be affected as groups are being merged and new roles have been identified or removed as part of the process. “
“As a leader with ̵6;Best Workplace’ priority, I tell you as part of changes to our operating structure with a heavy heart we will say goodbye to some of our colleagues, friends and colleagues today, “Drake said. “These decisions do not reflect their immense talent, the quality of their work or the meaningful contributions they make at our company. We recognize that this is a challenging moment in our industry, and to provide as much support as possible to colleagues who leave us, we are making improvements to our separation policy. her expertise in a number of areas including health care, job support and layoffs. “
Lionsgate announced on March 30 that it had laid off nearly 20 employees, mainly in the marketing and distribution of feature films, as part of a restructuring process unaffected by the coronavirus outbreak. . Lionsgate, like all studios, stopped releasing theaters due to the pandemic, including restarting Chris Rock-Samuel L. Jackson’s “Saw”, Janelle Monae’s “Antebellum” and Sarah Paulson’s “Run” . “Antebellum” is being released on PVOD and “Run” has been sold to Hulu.
The pandemic has delayed release plans for all Hollywood studios because audiences remain reluctant to return to multiplex channels. Most major titles have been moved out of 2020.
Drake ended the note Thursday by saying: “To our departing colleagues, we are extremely grateful to each of you. You have given this company your voice, your ideas and a commitment to excellence to make a difference every day. Please contact me directly if I can help answer any questions or if I can serve as you decide where to direct your talent next. “
Lionsgate is expected to report quarterly earnings after the stock market closes on Thursday.