Starz is set to reduce its staff by 10%, a spokesperson confirmed Friday to TheWrap. The move comes as the premium cable network separates from its former parent company Lionsgate to become its own independent company.
The company will also cease operations in the U.K. and Australia, the Starz spokesperson told TheWrap. This comes after the company announced it was moving out of Latin America during a recent earnings call.
In a company-wide memo, CEO Jeffrey Hirsch explained these changes were made “to align our organization with the growth areas of the business and to prepare us for our next chapter as a standalone company.” The same memo also credited the company’s “laser focus on the changing environment” and ability to adapt as a reason why Starz remains “one of the only profitable premium networks.”
“We are committed to ensuring that those impacted today are supported and their transition is as easy as possible,” Hirsch wrote.
The long-discussed split was supposed to take place in September of this year. However, due to Lionsgate’s acquisition of eOne as well as uncertainties around the resolved WGA strike and ongoing SAG-AFTRA strike, that split was delayed until early 2024.
In a SEC filing, it was revealed that Lionsgate’s film and TV studio would become a separate company under this proposed divide. However, STARZ would remain as part of the existing firm. In prepared remarks during the company’s most recent earnings call, Lionsgate CEO Jon Feltheimer said that the company remained “committed to the separation of Lionsgate and Starz.”
First launched in 1994, Starz is known for beloved series such as “Outlander,” the “Power” universe and “Party Down.”
CNBC first reported news of the layoffs.
