Lionsgate, the entertainment company, is set to reduce the workforce of its recently acquired production outfit, eOne, as the acquisition approaches its official completion at the end of the month. Reports suggest that a single-digit percentage of employees will be laid off, though an exact figure has not been confirmed. This move comes as a shift in strategy by Hasbro, who acquired eOne in 2019 for $4 billion, led to the decision to put the entity up for sale. It appears that Lionsgate’s interest in eOne lies primarily in their TV series and film properties, including popular shows like Yellowjackets and The Rookie.
Although an official confirmation is yet to be received, reports suggesting that 10% of employees will be laid off have been cast into doubt by an inside source. It is expected that some workers will remain with Lionsgate during a transitional period before eventually leaving the company, while others will exit in the near term. The uncertainty surrounding these layoffs is indicative of the challenges faced in integrating two separate organizations and aligning their operations. Such transitions often result in redundancies as overlapping roles are identified and eliminated.
Hasbro’s decision to sell eOne can be seen as a strategic move to distance itself from Hollywood productions while retaining ownership of eOne’s lucrative kids and family properties like Peppa Pig and My Little Pony. This shift in focus allows Hasbro to concentrate on its core toy business while still benefiting from the revenues generated by these iconic children’s franchises. The decision to acquire eOne in the first place was a strategic one by Hasbro to diversify its portfolio and expand its presence in the entertainment industry.
As part of the acquisition, Lionsgate gains control over eOne’s film division, which has had a mixed performance in recent years. While some releases, such as the sci-fi film The Creator, failed to resonate with audiences, others like the specialty film Mrs. Harris Goes to Paris have enjoyed steady box office success. The acquisition of eOne’s film properties allows Lionsgate to bolster its own film library and potentially capitalize on future successes within the division.
When approached for comment on the reported layoffs, both Lionsgate and eOne declined to provide a statement. Their silence is not unusual in such situations where significant workforce reductions are taking place. Companies often choose to limit public discussion of layoffs to avoid negative publicity and potential legal challenges. As is common in the industry, the affected employees are likely to receive severance packages and support as they transition to new job opportunities.
The acquisition of eOne represents a significant move for Lionsgate as it seeks to expand its portfolio of TV series and films. This strategic acquisition aligns with Lionsgate’s ongoing efforts to position itself as a major player in the entertainment industry. Additionally, the decision to postpone the shareholder vote on the separation of the studio and Starz businesses further highlights the company’s focus on growth and expansion through acquisitions and partnerships.
Lionsgate’s workforce reduction within eOne as the acquisition nears completion is a common occurrence during such integrations. The decision by Hasbro to sell eOne reflects their strategic shift to prioritize their core toy business while retaining ownership of key children’s franchises. The performance of eOne’s film division has been mixed, but Lionsgate’s acquisition presents an opportunity for the company to strengthen its own film library. The silence from Lionsgate and eOne regarding the reported layoffs is not uncommon, as companies often choose to limit public discussion in such situations. Ultimately, this acquisition contributes to Lionsgate’s broader strategy of growth and expansion within the entertainment industry.