### Lionsgate Launches Voluntary Severance Program Amid Industry Layoffs

Lionsgate has introduced a voluntary severance and early retirement program for its U.S.-based employees as part of its strategic response to the contracting media and entertainment industry. The company, which recently underwent job cuts and reduced TV producer deals during the integration of eOne, is taking this voluntary approach initially. However, layoffs may follow depending on the uptake of the offers, which are predominantly targeted at Lionsgate Studios staff.

In a memo to employees, CEO Jon Feltheimer explained that the program would help the company adapt to a disrupted business environment, thanking employees for their cooperation and support in strengthening Lionsgate’s position as a global entertainment leader. The move is a part of a broader cost-saving and productivity-enhancing effort amid ongoing industry challenges, including the rise of streaming services and the decline in linear TV viewership.

The decision comes during a turbulent period for the entertainment sector, with other major entities like Disney and Paramount Global also implementing significant layoffs. Last week, Disney eliminated around 300 jobs to reduce costs, and Paramount Global continued its effort to cut 15% of its workforce, aiming to save $500 million.

Simultaneously, Lionsgate is progressing through a comprehensive corporate restructuring, which will see the separation of Lionsgate Studios from Starz by the end of the year. Additionally, Feltheimer directed all EVPs and above to return to the office five days a week beginning January 2, 2025, while other full-time employees will maintain the current policy of working in-office four days a week. Certain return-to-office accommodations will be reviewed for necessity.

The memo also highlighted that the return-to-office policy is critical for effective operations, emphasizing the need for communication and in-person collaboration. Further details on the severance and early retirement program, including eligibility and benefits, were to be provided by CHRO Ross Pollack later that morning.

The entertainment industry continues to experience rapid workforce reductions as companies seek to adapt to the evolving business landscape, with Lionsgate positioning itself to remain competitive and resilient through these strategic measures.