BREAKING… EXCLUSIVE: I’ve just learned that Lionsgate is laying off about 80 staff today from the merged company with Summit, including executives as high up as EVP. Insiders are begging me not to call this a bloodbath because enough people are freaked out already. The integration of Lionsgate and Summit is ongoing, and this move was expected to eliminate duplication. But it’s still horrible when it happens. Lionsgate is reducing the combined workforce of the two companies by approximately 12%. It’s unclear how many employees are actually being notified today. Lionsgate had about 500 employees prior to the merger, Summit about 175 employees. The total combined workforce will be approximately 575 which makes Lionsgate a bigger and more muscular company post-merger. I don’t have any breakdown of how many Lionsgate and how any Summit employees will be laid off, but I’m told motion picture and home entertainment are the areas with the greatest number of overlapping functions.
EXCLUSIVE… UPDATE: I’ve just learned that Relativity Media has begun a process of laying off staffers from the operations and marketing teams. All 10 affected employees were told today. Relativity Media has a total workforce of about 215. The layoffs follow the company’s announcement that it will promote the Bandito Brothers’ upcoming action-thriller Act of Valor with four 30-second Super Bowl-timed spots on February 5th. These commercials are super-expensive which is why most studios usually confine their Super Bowl movie ads to one. In addition to business news reports speculating about Relativity Media’s financial health, there has been considerable executive roiling at the top echelon of the media company run by Ryan Kavanaugh.