- Starz CEO Jeffrey Hirsch introduced Starz will lay off workers and exit the U.Okay. in a letter to workers immediately.
- The job cuts will probably be greater than 10% of whole workers, in keeping with an individual accustomed to the matter.
- Starz will separate itself from Lionsgate’s studio within the first quarter.
Starz CEO Jeffrey Hirsch
Supply: Starz
Starz, the premium community and streaming service that may quickly be its personal publicly traded firm, is shedding greater than 10% of workers and is exiting Australia and the U.Okay.
Starz Chief Government Officer Jeffrey Hirsch introduced the information in an electronic mail to workers obtained by CNBC on Friday. Starz has about 670 workers. He additionally addressed workers in a company-wide city corridor.
The cuts will probably be within the excessive double-digits however lower than 100, in keeping with an individual accustomed to the matter. A Starz spokesperson declined to touch upon the variety of cuts however confirmed the authenticity of the letter to workers.
Lionsgate and Starz have been a part of the identical firm since December 2016, when Lionsgate acquired Starz for $4.4 billion. That marriage will finish within the first quarter, when the corporate plans to spin Lionsgate as a individually traded firm.
“We’re making these adjustments to align our group with the expansion areas of the enterprise and to arrange us for our subsequent chapter as a standalone firm,” Hirsch wrote within the observe.
Lionsgate shares rose 6.2% in noon buying and selling.
Starz introduced final quarter it deliberate to exit Latin America to concentrate on the U.S., U.Okay. and Canada. Exiting the U.Okay. will scale down the corporate’s operations and doubtlessly put together it to merge with or purchase one other U.S.-based media asset, equivalent to A&E Networks or Paramount World’s BET.
Starz can also be folding its Canadian enterprise into its U.S. operations.
Starz ended final quarter with about 12 million home streaming subscribers and about 20 million whole prospects when together with those that join by conventional pay TV. The leisure firm has targeted on feminine and Black audiences with sequence together with “Outlander” and “Energy.”
Lionsgate will report its third-quarter earnings Thursday.
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