Sony will lay off employees in its entertainment group next week, according to individuals familiar with the studio’s plans. It remains unclear how many people will lose their jobs, but that will also become public next week.
Layoffs have been expected for months.
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 in overhead, and the studio laid off a few dozen employees earlier this year. The parent company has also been retrenching due to losses on electronics side.
The entertainment side will continue to cut overhead as it seeks to maximize efficiency and profits. The studio has been trimming its overhead in the wake of a public battle with investor Dan Loeb last summer. Though Sony’s board rejected some of Loeb’s proposals, CEO Kazuo Hirai and Sony Entertainment CEO Michael Lynton acknowledged a need to be more transparent.
Though Sony is trimming operations, its film studio has brought in several prominent executives, including Tom Rothman and Michael De Luca, to inject new energy. Insiders said Sony would not lay off a lot of people in the motion picture group.