As the company continues to break from Starz, Lionsgate Motion Picture Group has laid off another group of employees on April 20th, 2023. While the actual number has not been released, several sources have suggested that it is a small group of employees. The two firms intend to complete the separation in September 2023.
This is the latest in a string of layoffs. Lionsgate quietly stated in early February that it has cut off around 10% of its employees across all divisions over the course of six months. According to Lionsgate CFO Jimmy Barge, these savings resulted from reducing corporate expenditures as part of an effort to restructure the studio ahead of the forthcoming split in September.
As the firm prepares to exit Starz, Chairman Joe Drake and Vice Chair Adam Fogelson are in charge of reorganizing Lionsgate’s studio department.
While it is true that this is a difficult economic situation in which to begin, repeated rounds of layoffs stand in stark contrast to Lionsgate’s $1 billion in revenue in Q3. In after-hours trading, the company’s stock surged more than 5%.
The upcoming theatrical releases will be a true testament to Lionsgate’s future. John Wick: Chapter 4 debuted on March 24th and rapidly became the fifth highest-grossing film of 2023, grossing $350 million worldwide.
Expendables 4 will be released in September, followed by Saw X in late October, according to the company.There has been no indication on future layoffs, but given Lionsgate’s previous track record of laying off people while reporting record-breaking quarterly earnings, there appears to be no promises for present employees.
Hopefully, these new additions to their already successful brands will prevent any further waves of layoffs.