AMC Networks is planning a “large-scale layoff” amid CEO Christina Spade’s abrupt departure from the company after less than three months, per an internal memo penned by chairman James Dolan, obtained by TheWrap.
In the note to staff, Dolan — who pointed to a need for resource conservation following mixed third-quarter earnings results — said that the company has “directed the executive leadership of AMC Networks to undergo significant cutbacks in operations.”
Earlier on Tuesday, the TV and streaming company announced Spade’s exit, though no reason was given for her leaving. She had served in the post since Sept. 9, taking over Matt Blank who held the position as an interim since September 2021. When AMC Networks’ Board of Directors names a replacement, which it is currently finalizing, it will mark the company’s fourth individual at the helm in two years.
In early November, AMC Networks reported a 44% growth in its streaming subscriber count, which was offset by a revenue loss driven by a 10% advertising slump — experienced by many conglomerates in the downturning economic environment. The company experienced an ad sales drop, as well as international revenue loss, despite exhibiting streaming revenue growth, on part of original AMC+ hit “Anne Rice’s Interview With the Vampire,” which it touted as one of its biggest new releases.
Dolan’s memo said as much, emphasizing that losses on the cable side were not made up by streaming increases, as initially predicted: “It was our belief that cord cutting losses would be offset by gains in streaming. This has not been the case. We are primarily a content company and the mechanisms for the monetization of content are in disarray,” he wrote.
In 2020, AMC Networks announced cuts to 10% of its workforce. At the time, then-CEO Josh Sapan said the restructuring was meant to streamline linear network operations with streaming, regarded as the company’s main source of potential future growth.
AMC’s national networks include AMC, WE tv, BBC America, IFC, SundanceTV and AMC Studios. Its subscriber-video-on-demand services include AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK (formerly UMC) and Sentai-owned HIDIVE.
Read the memo in full below:
AMC Networks Community:
As I am sure you are aware our industry has been under pressure from growing subscriber losses. This is primarily due to “cord cutting.” At the same time we have seen the rise of direct to consumer streaming apps including our own AMC+. It was our belief that cord cutting losses would be offset by gains in streaming. This has not been the case. We are primarily a content company and the mechanisms for the monetization of content are in disarray.
It is for that reason that myself and the Board of Directors of AMC Networks have concluded that we as a company need to conserve our resources at this time. We have directed the executive leadership of AMC Networks to undergo significant cutbacks in operations. These will include a large-scale layoff as well as cuts to every operating area of AMC Networks. We of course realize that this will cause significant concern and anxiety for our employees and those who rely on AMC Networks for their livelihood. We do not take this lightly. We will take every step possible to minimize the impact of these actions on our community. However, it is imperative that we begin immediately with this new course of action.
The Dolan Family and the Board of AMC Networks have great pride in the company and products that you have created. This is a confusing and uncertain time in our industry. We are confident that AMC Networks will come through this even stronger. Your executive leadership will follow up with details shortly. We wish only the best for everyone in the AMC Networks community.
Sincerely,
James Dolan
