Lionsgate Offers Employees Voluntary Severance Amid ‘Disrupted Business Environment’

Lionsgate is offering its U.S. employees voluntary severance and early retirement packages amid efforts to “adapt our workforce to the disrupted business environment,” according to a memo obtained by TheWrap on Monday.

The offer comes after Lionsgate acquired Entertainment One (eOne) from Hasbro, a deal which led the studio to cut 10% of eOne’s workforce last December ahead of the merger. Lionsgate has also recently debuted its studio division as its own standalone entity, separate from Starz.

It also comes after Disney and Paramount announced layoffs last week, with Disney cutting 300 staffers and Paramount cutting 15% of its workforce as part of a $500 million cost-cutting measure. Layoffs have swept across the entertainment industry amid the decline of linear television and major spending cuts by studios in an effort to make their streaming services profitable.

Additionally, Monday’s memo notes that the company’s executive vice presidents and up will be required to work five days in-office per week starting in 2025, while all other employees must do four.

Whether or not Lionsgate proceeds with further layoffs remains to be seen, as it will likely be determined by how many employees accept this voluntary severance. In its most recent quarterly earnings report, Lionsgate reported a $59 million loss in Q2, with its television division reporting a slight increase in income that helped cut the company’s losses.

Read the full memo from Lionsgate CEO Jon Feltheimer, 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 EVPs and above will be required to return to the office five days a week effective Jan. 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