Lionsgate Offering Employees Voluntary Severance Amid “Disrupted Business Environment”    

Lionsgate is offering its U.S. employees a voluntary severance and early retirement program amid a contracting media and entertainment landscape that’s resulted in widespread and ongoing industry layoffs.

The company, which cut jobs and slashed TV producer deals as it absorbed eOne, is starting now with a voluntary approach. But, as these things go, layoffs could be a next step depending upon how many staffers take up the packages, which are focused at Lionsgate Studios.

Deadline hears they’ve been in the works for some time and are not related to the company’s recent bum box office run — although that likely hasn’t helped.

“We are offering Lionsgate U.S.-based employees a voluntary severance and early retirement program that will allow us to adapt our workforce to the disrupted business environment,” Lionsgate CEO Jon Feltheimer said in a memo to staff obtained by Deadline.

“We thank you for your cooperation and support in making this plan a success and enabling Lionsgate to strengthen its position as a global entertainment leader.”

It’s a very tough time to be working in the sector. Last week alone, Disney began another round of layoffs hitting about 300 staffers as part of a cost cutting push. And Paramount Global laid off hundreds in an ongoing move to cut about 15% of its workforce and save $500 million. The industry as a whole, upended by streaming and the decline of linear television, has been shedding workers at a rapid pace.

The buyout offers also come with Lionsgate in the midst of a major corporate restructuring that will see Studios separate from Starz in a split expected by year end.

Feltheimer’s memo today also addressed in-person work, requiring all Lionsgate EVPs and above to return to the office five days a week, effective January 2. All other full-time employees will continue to adhere to the current four-days-a-week policy.

“We are a creative organization that relies on communication and in-person collaboration, and we need “all hands on deck” to continue to operate effectively in these challenging times,” he wrote.

Full memo below:

Dear Colleagues:

As we continue to move toward the full separation of the studio and STARZ in a challenging operating environment, Lionsgate’s Executive Committee has approved a multifaceted strategic plan to enhance productivity and achieve greater cost efficiencies.  We are taking the following initial steps to execute our plan: 

First, all Lionsgate EVP’s and above will be required to return to the office five days a week effective January 2, 2025.  All other Lionsgate full-time employees will be required to adhere to our current corporate policy of working in the office at least four days a week.  We are a creative organization that relies on communication and in-person collaboration, and we need “all hands on deck” to continue to operate effectively in these challenging times.  Division Heads (with the assistance of Human Resources) will review existing accommodations for individual employees to determine whether there is a need to continue those exceptions to the return-to-office policy.  Friday work hours, in the office and remotely, will be left to the discretion of individual supervisors.  The Executive Committee has given this careful consideration, and we believe this is a necessary step towards continuing to move our business forward; and

Second, we are offering Lionsgate U.S.-based employees a voluntary severance and early retirement program that will allow us to adapt our workforce to the disrupted business environment.  Ross Pollack, our CHRO, will email you the specifics of this program later this morning, spelling out eligibility criteria, terms and conditions, benefits and important program deadline information.  Once these packages have been circulated and you have had an opportunity to read them carefully, please feel free to reach out to your Human Resources business partner with any questions.

We thank you for your cooperation and support in making this plan a success and enabling Lionsgate to strengthen its position as a global entertainment leader.

Sincerely,

Jon