Sony is the latest major Hollywood studio to engage in a significant wave of layoffs. On Monday, pink slips were handed out to hundreds of Sony employees across its Film, Television and Corporate divisions. The cost cutting was initiated by Ravi Ahuja, Sony’s New Chief Executive. In his statement on the change, Ahuja explained, “To support our growth, we are aligning our organization with where the business is going…not where it has been.”
Sony is pursuing a plan to invest in the growth sectors of their business, led by Anime, Videos Games and Game Shows. In addition, key executives have also been vocal in their support of the company’s theatrical business, with Tom Rothman, in charge of the studio’s Motion Picture Group, recently publishing a NYT Op-Ed article defending the importance of the exclusive theatrical window on new releases and announcing its plans to hold to a 120-day window before streaming availability. However, the layoff also reflects the reality of tightening economics in motion picture business across the industry. Last November, Paramount announced a target of 15% across-the-board layoffs at the company to streamline its operations and reduce costs.
