MGM has enacted a spherical of companywide layoffs, Selection has discovered completely. The studio’s advertising and distribution arm United Artists Releasing has additionally furloughed one third of its employees.
Seven % of MGM’s workforce of 750 was eradicated on Friday, round 50 jobs, insiders stated. The cuts come throughout all the operation, in departments together with scripted and unscripted tv and have movie.
UAR, the joint distribution enterprise between MGM and Annapurna Photos, has deferred employment for one-third of its employees of 80. Senior administration at each firms may also take wage reductions. Like many distribution outlets, UAR workers can’t carry out fundamental job duties whereas film releases are delayed and theaters stay closed amid the coronavirus pandemic.
“Within the face of those world financial and business enterprise challenges, we now have undertaken sure actions to mitigate the present monetary influence on our enterprise and to make sure MGM is nicely positioned for the longer term,” learn a Friday memo obtained by Selection, despatched from the studio’s senior administration. “Sadly, these modifications necessitate some everlasting reductions of our workforce. All impacted workers have been notified.”
MGM was compelled to shoulder substantial monetary losses when it pulled the James Bond movie “No Time to Die” simply weeks earlier than a scheduled launch in April — advertising and publicity spending was already in movement when the choice was made because of the coronavirus. One studio insider stated MGM’s liquidity has nothing to do with Friday’s layoffs, and that the cash faucet to advertise Bond was turned off simply earlier than the majority was spent. The corporate will take an incremental lack of $30 million, when all is claimed and achieved, in selling the Daniel Craig venture.
Some UAR workers are anticipated to return again as early as August, when the operation plans to launch the Keanu Reeves movie “Invoice & Ted Face the Music.” They be a part of many others in Hollywood trying to trip out the financial havoc attributable to COVID-19.
MGM was the primary studio to blink and transfer a significant movie launch, even earlier than coronavirus was declared a pandemic by the World Well being Group on March 19. Initially set for April 10, the Bond movie has shuffled forward to Nov. 25, the Wednesday earlier than Thanksgiving.
Following “Invoice & Ted,” the studio is ready to launch Jordan Peele’s reimagining of the horror movie “Candyman” and, in December, the Aretha Franklin biopic “Respect.” MGM’s TV enterprise, shepherded by energy producer Mark Burnett, counts among the most profitable packages on the air — “Survivor,” “Shark Tank” and “Beat Shazaam” to call a couple of.
Cuts at firms comparable in measurement and profile to MGM have come down prior to now two weeks. Annapurna Photos laid off its Chief Monetary Officer James Pong, 4 inventive executives in movie and TV, and employees on the assistant stage on Monday. Two weeks in the past, Jason Blum’s Blumhouse Productions laid off assistants and coordinators and introduced pay cuts for senior management.
All main expertise businesses have both diminished employees or slashed pay, or each. The Walt Disney Firm has been hit hardest among the many main studios, furloughing tens of 1000’s of parks workers and plenty of others in company and studio divisions.
Learn the complete memo from MGM management:
We’re writing in the present day to supply an replace on MGM’s response to COVID-19 and the steps we’re taking to deal with the present challenges going through our business and to make sure the continued energy of our firm. Our precedence stays the well being and well-being of the workers, expertise and demanding help employees who collectively produce and distribute MGM’s distinctive content material.
Whereas MGM stays in a powerful place total, the extraordinary occasions associated to the worldwide pandemic have impacted our complete business, with nearly all world productions at present on maintain and movie releases delayed. Essentially the most tough a part of this case from a enterprise perspective, as you may think about, is that we have no idea when it will change.
Within the face of those world financial and business enterprise challenges, we now have undertaken sure actions to mitigate the present monetary influence on our enterprise and to make sure MGM is nicely positioned for the longer term. To that finish, we’re reconfiguring sure divisions of the studio to permit MGM to function extra successfully in a altering media panorama, each throughout this pandemic, and past. Sadly, these modifications necessitate some everlasting reductions of our workforce. All impacted workers have been notified.
The MGM senior administration workforce have taken voluntary pay reductions throughout all divisions of the corporate.
Please know that we didn’t make these selections frivolously. We’re deeply grateful to our buddies and colleagues for his or her contributions to the studio and are working to help them with this transition.
We stay dedicated to going through these difficult circumstances collectively and are assured MGM will emerge stronger on the opposite facet. Our content material is performing extraordinarily nicely and our library, considered one of Hollywood’s largest, is as useful and as productive as ever each within the U.S. and overseas. MGM will proceed to function our enterprise for long run success.
Thanks to everybody within the MGM household throughout this ever-changing scenario and to all those that proceed to efficiently handle our world operations below extremely tough situations.
Keep secure and nicely,