Lionsgate is offering voluntary severance and early retirement programs to its U.S. employees amid a shrinking media and entertainment landscape that has led to widespread and continued layoffs in the industry.
The company, which cut jobs and slashed contracts with TV producers when it absorbed eOne, is now taking a voluntary approach. However, if this situation progresses, layoffs could be the next step, depending on the number of staff working on packages centrally at Lionsgate Studios.
According to Deadline, these plans have been in the works for quite some time and are unrelated to the company's recent box office performance, which probably didn't help.
In a memo to staff obtained by Deadline, Lionsgate CEO John Feltheimer wrote, “I would like to remind Lionsgate employees based in the U.S. that they are not willing to leave their employees in a chaotic business environment. We offer voluntary redundancy and early retirement programs to help you adapt.”
“We appreciate your cooperation and support in making this plan a success and strengthening Lionsgate's position as a global entertainment leader.”
It's a very tough time to work in this field. Disney began new layoffs for about 300 employees last week alone as part of its cost-cutting efforts. And Paramount Global has cut about 15% of its workforce, laying off hundreds of people in an ongoing move to save $500 million. The entire industry has been disrupted by the decline of streaming and linear TV, and is laying off workers at a rapid pace.
The offer also comes from Lionsgate, which is in the midst of a major corporate restructuring that will separate Studios and Starz by the end of the year.
Feltheimer's memo today also mentions in-person work, requiring everyone at Lionsgate's EVP level and above to return to the office five days a week, effective Jan. 2. All other full-time employees will continue to adhere to the current four-day week. policy.
“We are a creative organization that relies on communication and face-to-face collaboration, and we need “all hands on deck” to continue operating effectively during this difficult time,” he wrote.
Full notes below:
Dear Colleagues:
Lionsgate's Executive Committee has approved a multi-faceted strategic plan to improve productivity and achieve greater cost efficiencies as the company continues to move toward complete separation of the studio and STARZ in a challenging operating environment. did. We are taking the following initial steps to implement our plan.
First, Lionsgate vice presidents and above will be required to return to the office five days a week starting January 2, 2025. All other full-time Lionsgate employees are expected to follow the current company policy of working at least four days in the office. How many days a week? We are a creative organization that relies on communication and direct collaboration, and we need 'all hands on deck' to continue to operate effectively during these difficult times. Department heads (with assistance from Human Resources) will review the existing circumstances for individual employees and determine whether exceptions to the return-to-office policy need to continue. Friday work hours, whether in-office or remotely, are at the discretion of individual supervisors. Our Executive Committee has considered this carefully and believes this is a necessary step to continue moving our business forward. and
Second, we offer Lionsgate employees based in the United States voluntary severance and early retirement programs to help them adapt to the turbulent business environment. Our CHRO, Ross Pollack, will email you details about this program later this morning. Its details detail eligibility criteria, terms and conditions, benefits, and important program deadline information. Once these packages have been distributed and you have had a chance to read them carefully, please feel free to contact your Human Resources Business Partner if you have any questions.
We appreciate your cooperation and support in making this plan a success and strengthening Lionsgate's position as a global entertainment leader.
Sincerely,
john
