Amidst the tightening of the entertainment industry, Lionsgate Television has announced a new round of staff reductions. According to confirmed reports, five employees from the scripted TV division were let go on Thursday, representing 6% of the company's 80-person workforce. This move follows previous layoffs in November that affected 5% of the unscripted television team. The company is navigating a challenging market environment, which has placed independent studios like Lionsgate under significant pressure. Despite these challenges, Lionsgate continues to produce popular content for various platforms, including Starz, CBS, and Apple TV+.
The decision to reduce staff comes as the entertainment industry faces a period of economic uncertainty. Independent studios are feeling the pinch as they compete in an increasingly competitive marketplace. For Lionsgate Television, this situation has been further complicated by its extensive catalog of successful shows. Among its notable productions are the “Power” franchise and crime drama “BMF,” both airing on Starz. Additionally, the studio contributes to CBS' hit sitcom “Ghosts,” Apple TV+'s “Acapulco,” and Seth Rogen’s upcoming series “The Studio.” The acquisition of eOne brought additional responsibilities, including Showtime’s “Yellowjackets” and Netflix’s recently canceled “The Recruit.”
These layoffs also coincide with Lionsgate's plans to separate from Starz, a move expected to occur by mid-to-late April. CFO James Barge has stated that this separation aims to enhance shareholder value on both sides. He highlighted that while Lionsgate appears to be competing with conglomerates like Comcast and Disney, Starz operates as a unique business entity that has been misunderstood. The restructuring is intended to clarify the distinct roles of each entity within the broader media landscape.
In recent months, Lionsgate has undergone several organizational changes. In December 2023, the company laid off 10% of eOne’s staff ahead of a $375 million merger. Earlier in the year, Hasbro, then the parent company of eOne, had already downsized by 20% in preparation for selling the asset. These strategic moves reflect the company's efforts to adapt to the evolving entertainment sector and position itself for future growth.
The ongoing adjustments at Lionsgate underscore the dynamic nature of the entertainment industry. As the company prepares for its separation from Starz and continues to streamline operations, it remains committed to delivering high-quality content across multiple platforms. While the current climate presents challenges, Lionsgate's resilience and adaptability position it well for the future.