Starz is restructuring ahead of its planned separation from Lionsgate early next year.
The streaming service and premium cable channel will cut 10 percent of its staff, and exit its business in the U.K. The changes were announced by Starz CEO Jeffrey Hirsch on Friday.
“As difficult as it is, with many of our employees being impacted, we are making these changes to align our organization with the growth areas of the business and to prepare us for our next chapter as a standalone company,” Hirsch wrote in a memo. “As I have said many times before, I believe that we have the best team in the business and appreciate the contribution of each employee, which makes these organizational changes even more difficult.”
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Lionsgate first announced its plans to spin out Starz last year, splitting the company in two, with its film and TV studio in one company, and the Starz channel and streaming platform in another. However, a disruptive 2023, with the two Hollywood strikes, a tricky advertising environment, and Lionsgate’s $500 million purchase of eOne delayed the seperation into 2024.
The company is also navigating interest from former Treasury Secretary Steven Mnuchin, whose firm acquired a significant stake in the company in September. A filing from Mnuchin indicated that he is taking a particular interest in the studio business of Lionsgate, rather than Starz.
Read Hirsch’s full memo, below.
This morning we announced a company-wide organizational restructure, including the exit of the UK territory. As difficult as it is, with many of our employees being impacted, we are making these changes to align our organization with the growth areas of the business and to prepare us for our next chapter as a standalone company.
What has been instrumental to our successful transition from a linear only business into the new digital world, has been our laser focus on the changing environment, anticipating what lies ahead and adapting the organization to succeed in this disruptive environment. It’s why we continue to stand out as one of the only profitable premium networks.
As I have said many times before, I believe that we have the best team in the business and appreciate the contribution of each employee, which makes these organizational changes even more difficult. We are committed to ensuring that those impacted today are supported and their transition is as easy as possible.
We will have the opportunity to discuss these changes and more in our upcoming Business Update and in the meantime your leaders will be sharing information specific to your area of the business.
Jeff
