Lionsgate’s acquisition of eOne last August has resulted in the cutting of the production outfit’s workforce by a single-digit percentage as the acquisition approaches its official close at the end of the month. While media reports earlier today estimate that 10% of staff would be let go, a personal familiar with the integration process has confirmed that the layoffs will be smaller than anticipated. Some employees are expected to remain with Lionsgate during a brief transition period before departing, while others will be leaving in the near term.
Before Lionsgate emerged as the winning bidder for eOne, the film and TV production entity had gone into play due to a strategy shift at Hasbro. The toy company, which had acquired eOne for about $4 billion in 2019, has stepped back from Hollywood fare but retained eOne’s successful kids and family properties such as Peppa Pig and My Little Pony. This change in direction led to eOne being put up for sale, with Lionsgate ultimately securing the deal.
As part of the acquisition, Lionsgate will gain ownership of various TV series and films previously under eOne’s umbrella. This includes popular TV shows like Yellowjackets, The Rookie, and the Naked and Afraid franchise. On the film side, eOne has experienced a mixed run as of late, with recent releases such as the sci-fi misfire The Creator and the steady-grossing specialty title Mrs. Harris Goes to Paris. The acquisition by Lionsgate will now determine the future trajectory of these titles.
Both Lionsgate and eOne have declined to comment on the recent layoffs. It is unclear why the companies have chosen not to provide any official statements regarding the job cuts, creating a sense of uncertainty for employees and the industry as a whole. The lack of transparency raises questions about the reasons behind the layoffs and the overall strategy going forward.
Lionsgate executives cited the eOne deal and the SAG-AFTRA strike as the reasons for postponing a shareholder vote on the company’s planned separation of its studio and Starz businesses. This move comes after the evaluation of various strategic alternatives, ultimately leading Lionsgate to decide on separating Starz and the studio operation, creating two publicly traded entities. The acquisition of eOne potentially plays a significant role in this decision, as Lionsgate navigates its future direction in the industry.
The layoffs at Lionsgate’s acquisition of eOne signify a significant change within the entertainment industry. While the exact extent of the job cuts remains uncertain, the acquisition by Lionsgate will undoubtedly shape the future of eOne’s titles and releases. The silence from Lionsgate and eOne regarding the layoffs raises questions about their decision-making processes and the overall strategic direction of the companies. As the industry continues to evolve, it is important to critically analyze these developments and consider the long-term implications for both employees and the entertainment landscape as a whole.