You are using an older browser version. Please use a supported version for the best MSN experience.

Sony to Cut More Than $100M in Coming Months

6/17/2014

By Lucas Shaw and Brent Lang
TheWrap

Sony Pictures Entertainment has hired management firm Bain & Company to identify inefficiencies within the company and advise it on more than $100 million in planned cuts to its staff and overheard, according to an individual with knowledge of the studio's plans.

News of the cuts was first reported by the New York Times, and though Sony did not acknowledge any of the specifics in that report, it did acknowledge forthcoming cuts to its entertainment division.

"As part of a nearly four year process of increasing fiscal discipline, Sony Pictures is conducting a review of its business to identify further efficiencies," according to studio spokesperson Charles Sipkins. "Our objective is, and always has been, to operate an efficient studio that is uniquely positioned to capitalize on future growth opportunities."

The move comes after a bruising summer for the studio, which suffered several high-profile film flops such as "After Earth" and "White House Down" and box office disappointments such as "Elysium" and "Smurfs 2."
It also had to contend with a very public and noisy campaign by activist investor Daniel Loeb, who tried to pressure Sony's parent company to spend off its entertainment assets into a separate publicly traded company.
In August, Sony's board unanimously turned down Loeb's proposal, but Sony Chief Executive Officer Kazuo has publicly stated that the studio needs to improve its greenlighting process and become more efficient in how it spends money.

More to come…

AdChoices
AdChoices
AdChoices
image beaconimage beaconimage beacon