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Lionsgate Offers Staff Voluntary Severance
https://www.whatjobs.com/news/usa/us-business-news/lionsgate-offers-staff-voluntary-severance-and-early-retirement-program
By Nagasunder in US business news, posted October 1, 2024
Lionsgate is offering a voluntary severance and early retirement program to its US-based employees.
This decision comes as part of a strategic initiative designed to adapt the workforce to an evolving and disrupted business environment, according to a company memo from CEO Jon Feltheimer.
Key Points of the Program
Voluntary Severance and Early Retirement: The program aims to boost productivity and cut costs but doesn't currently include mandatory layoffs, a notable distinction given the recent wave of job cuts across the entertainment industry.
Return-to-Office Mandate: The plan also calls for studio executives to return to the office five days a week. All executive vice presidents and above must adhere to this policy from January 2. All other full-time employees must work at least four days a week in the office.
Context: Challenges in the Entertainment Industry
The entertainment sector has been facing significant disruptions, including:
Pandemic Impact: Movie-going habits have changed dramatically, with more audiences opting for at-home streaming over traditional theaters.
As a result, US movie ticket sales were down about 17 percent through mid-July compared to last year, according to Comscore.
Industry-Wide Cost-Cutting: Lionsgate’s decision mirrors broader trends in the industry:
- Paramount Global recently restructured its TV production business, resulting in the elimination of 2,000 jobs.
- Pixar Animation Studios cut around 14 percent of its workforce.
- Amazon also reduced jobs across its film and TV studio and Twitch streaming platform.
Lionsgate's Recent Performance
The voluntary severance and early retirement program is not directly tied to Lionsgate's recent box office results.
The studio, known for its blockbusters in the 2010s like "The Hunger Games" and "Twilight," has struggled with its more recent films not reaching the same level of box office success.
CEO’s Perspective
In his memo, CEO Jon Feltheimer emphasized the importance of in-person collaboration for Lionsgate's creative organization.
He said:
"We need ‘all hands on deck’ to continue to operate effectively in these challenging times."
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