On the day of its earnings call, Lionsgate has made the tough decision to cut 15% of its Global Motion Picture Group workforce. Joe Drake, Chairman of Lionsgate Motion Picture Group, just revealed the bad news this morning to employees and you can read his memo below.
The cuts follow those that hit marketing and distribution last March soon after cinemas closed around the world, forcing Lionsgate’s theatrical releases to either be delayed (Spiral) on the calendar to 2021 or segue into the home on PVOD (Antebellum, I Still Believe). They also sold domestic rights to the Sarah Paulson thriller Run to Hulu.
Since Drake’s return to the studio 24 months ago, Lionsgate has been strategically reimagining the Motion Picture Group to meet the challenge of viewers’ changing viewing habits. The plan is to combine like-minded business units across marketing, distribution, content, and business strategy to create a streamlined business that is optimized for growth and opportunities across all Lionsgate verticals. However, the pandemic has no doubt accelerated the mini-major’s plans to realign the division. Last year, Lionsgate saw three movies open to No. 1 including John Wick: Chapter 3, Angel Has Fallen and Midway, but they also saw some profitable hits in Media Rights Capital’s Knives Out and Tyler Perry’s A Madea Family Funeral.
Facebook Marketing Exec Kamala Avila-Salmon Joins Lionsgate As Studio's First Head Of Inclusive Content
“As a leader whose first priority is ‘A Best Place to Work’, it is with a heavy heart that I tell you as part of the changes to our operational structure, we will be saying goodbye to a number of our colleagues, friends and co-workers today. These decisions are not a reflection of their immense talent, the quality of their work or the meaningful contributions they have made at our company,” said Drake in today’s email which you can read below.
No other areas of Lionsgate have been impacted. We’ll update you if we hear of any executive of note who is departing the studio. At the time of this report, Lionsgate share prices were trading at $7.02, +2.18%.
This past May we began the process of reimagining the Motion Picture Group, not only to address this moment of extraordinary change, but to position the group to operate and grow in whatever environment we find ourselves in. As we challenged each of you to help us rethink our business, one thing became clear: while the value and power of the stories we tell are stronger than ever, the significant change we are experiencing in the consumer and distribution landscape is not temporary or slowing down.
While our business remains fundamentally strong, we are not immune to the ongoing COVID crisis that is impacting us like so many other studios. These demands on our business necessitate that we accelerate changes to our own operations and strategic plan. And today, in order to meet the challenges and opportunities in front of us, we begin the implementation of a reorganization of the Motion Picture Group around four globally integrated verticals. This means that individuals across the MPG will be impacted as groups are being combined, and new roles have been defined or eliminated as part of this process.
As a leader whose first priority is “A Best Place to Work”, it is with a heavy heart that I tell you as part of the changes to our operational structure, we will be saying goodbye to a number of our colleagues, friends and co-workers today. These decisions are not a reflection of their immense talent, the quality of their work or the meaningful contributions they have made at our company.
We recognize that this is a challenging moment in our industry, and to provide as much support as we can to those colleagues leaving us, we are making enhancements to our separation policy in a number of areas including healthcare, job support and severance.
Impacted employees will learn more as Human Resources communicates the details, but I can share that the company will be providing a minimum of 9 months of healthcare coverage through COBRA regardless of how long you have been employed at Lionsgate, as well as job placement support through Career Minds placement service for as long as it takes to find new employment. And because we know firsthand how outstanding every single one of you are, we are setting up a program for affected employees to have priority introductions to positions as they open up across other areas of Lionsgate and STARZ.
In the next hour, every impacted employee will receive a calendar invite from a senior leader and our HR team where they will begin the transition process. In that meeting they will outline the next steps, and help answer any questions you have.
And while our energy today will be focused primarily on supporting our colleagues that are leaving, for those remaining with us, leadership will be reaching out to you to touch base, and to assure you that the lines of communication are open. Additionally, your Vertical lead will be scheduling a short meeting with your group for tomorrow morning to walk through a schedule of meetings and town halls that will happen over the next week. These subsequent meetings are designed to create transparency and detail around the new structure, share our strategic vision for the future, and answer the questions I am sure you will have.
To those colleagues who are leaving, we are enormously grateful to each and every one of you. You provided this company with your voice, your ideas and a commitment to excellence that made a difference every day. Please do not hesitate to reach out to me directly if I can help answer any questions or if I can be of service as you decide where to direct your talents next.
Read More About:
Source: Read Full Article