In recent developments, the independent studio Lionsgate Television has implemented further cost-cutting measures. According to sources, five employees from the scripted television department were let go on Thursday, representing approximately 6% of the company’s workforce of around 80 individuals. This move follows a similar reduction in November when Lionsgate Alternative Television laid off about 5% of its staff. The television industry is currently experiencing a contraction that has significantly impacted independent content providers. Additionally, these changes come as Lionsgate prepares for its upcoming separation from the premium network Starz, for which it has served as an in-house studio.
Staff Reductions at Lionsgate Television Highlight Industry Struggles
In the midst of a challenging period for the television sector, Lionsgate Television has announced a series of layoffs. On a crisp autumn day in early December, the company parted ways with five members of its scripted television team. This decision affects roughly 6% of the company's total workforce, which stands at about 80 employees. The reductions come after a previous round of layoffs in November, where around 5% of the unscripted television division was affected. These actions reflect the broader economic pressures facing the industry, particularly for independent studios like Lionsgate.
The timing of these layoffs is notable as they occur just before Lionsgate and Starz are set to undergo a significant corporate restructuring. Lionsgate Television has been instrumental in producing content for Starz, including popular series such as the Power franchise and BMF. Beyond Starz, the studio's portfolio includes CBS' Ghosts, Apple TV+'s Acapulco, and Seth Rogen’s upcoming comedy The Studio. Additionally, it oversees two series acquired through the eOne acquisition: ABC’s The Rookie and Showtime’s Yellowjackets. However, not all projects have fared well; Netflix recently canceled The Recruit after two seasons.
In late 2023, Lionsgate also reduced eOne’s workforce by 10% ahead of a $375 million merger. Furthermore, in September of the previous year, the company offered a voluntary severance and early retirement program to U.S. employees amid a disrupted business environment. Following the eOne acquisition, Lionsgate Television streamlined its producing deals by 70%, aiming to streamline operations and focus on core projects.
From a journalistic perspective, these layoffs underscore the ongoing challenges faced by the entertainment industry, particularly for independent studios navigating a rapidly changing market. The need to adapt to new platforms and shifting viewer preferences is evident, as companies like Lionsgate seek to maintain financial stability while continuing to produce high-quality content. The upcoming split between Lionsgate and Starz will likely bring further changes, highlighting the importance of resilience and innovation in this dynamic field.