Lionsgate is deeply engaged in a multi-faceted reorganization of its business. At the beginning of the year, the company announced plans to separate its movie studio business from its Starz cable TV assets, describing it as, “an important step forward…designed to deliver incremental value to all of our stakeholders.” By establishing each of the two key elements of its current business as its independent entity, it will gain additional flexibility to pursue opportunities for additional financing, including the possibility of a sale to larger media players.
CEO Jon Feltheimer announced a voluntary severance and early retirement program for U.S.-based employees this week. The announcement also included an updated policy requiring senior execs to work at the company’s offices all five days of the work week, with other staff reporting to the office at least four days per week.
Lionsgate Studios has had an uninspiring year at the box office, with disappointing results from its recent theatrical releases. This has placed additional pressure on the company to cut costs and improve the balance sheet by the end of the year.