More Sony Cuts: Dallas Distribution Office Closed, L.A.'s Trimmed

More Sony Cuts: Dallas Distribution Office Closed, L.A.'s Trimmed

The layoffs, which affect around 20 positions, are on top of the more than 200 the company filed for last week

Sony's downsizing is continuing, and its distribution office in Dallas is the latest casualty.

Around 15 people will get pink slips and operations will be shut down there as of June 2, an individual with knowledge of the situation said Sunday, and roughly 10 workers in Sony's distribution office in Los Angeles also will be let go. Sony declined to comment.

The news comes on the heels of last week's elimination of its interactive media team, which included 70- employees, and a state filing in which Sony said it would lay off 216 employees at the studio's Culver City headquarters. Those cuts, which began last week and will continue through June, include employees at divisions throughout the film and entertainment studio, a unit of Sony Corp.

Also read: Top Sony Execs Mike De Luca, Hannah Minghella Address Partnership, Rumors of Tension (Exclusive)

The pink slips come as SPE  is undergoing an extensive period of belt-tightening. The new economizing was prompted by a public battle with activist investor Dan Loeb last summer, during which the activist investor — and one of Sony's largest shareholders — tried to pressure the company to spin off its entertainment division. He used a series of film flops such as “White House Down” and “After Earth” to press his case.

Though Sony's board rejected some of Loeb's proposals, chief executive Kazuo Hirai and Sony Entertainment CEO Michael Lynton acknowledged a need to overhaul its greenlighting process.

Also read: Sony Pictures Shutters Interactive Group as Layoffs Hit

Sony has been working with Bain & Co. consultants to streamline entertainment operations spanning a film studio, TV studio and music label — among other divisions. TheWrap reported last November that Sony wanted to cut $100 million, and the studio laid off a few dozen employees while shuttering its technologies group earlier this year. Sony's parent company has also been grappling with losses on its electronics side resulting in the planted elimination of 5,000 jobs globally.

Sony Pictures has also pushed out several top executives, including marketing boss Marc Weinstock and home entertainment head David Bishop, in the past year as it overhauls studio operations.

  • Jim

    More Sony Cuts: Dallas Distribution Office Closed, L.A.'s Trimmed

    Why did they built that building on the old MGM lot.

    When they owned The Culver Studios, they built a building across the street from that studio lot, then they sold it, and built a building on the Sony Studios lot (the old MGM Studios). Why?

    Why doesn't Sony trim Amy Pascal by getting rid of her. All other studios are firing execs after releasing flops. Sony doesn't have any balls?

  • Tommie

    Climate change or hope and change. Just never ends!