Starz CEO Jeffrey Hirsch
Source: Starz
Starz, the premium network and streaming service that may soon be its own publicly traded company, is laying off more than 10% of employees and is exiting Australia and the U.K.
Starz Chief Executive Officer Jeffrey Hirsch announced the news in an email to staff obtained by CNBC on Friday. Starz has about 670 employees. He also addressed staff in a companywide town hall.
The cuts might be within the high double digits but less than 100, according to an individual acquainted with the matter. A Starz spokesperson declined to comment on the number of cuts but confirmed the authenticity of the letter to staff.
Lionsgate and Starz have been part of the identical company since December 2016, when Lionsgate acquired Starz for $4.4 billion. That marriage will end in the primary quarter, when the corporate plans to spin off Lionsgate as a individually traded company.
“We’re making these changes to align our organization with the expansion areas of the business and to prepare us for our next chapter as a standalone company,” Hirsch wrote within the note.
Lionsgate shares closed more than 7% higher Friday.
Starz announced last quarter it planned to exit Latin America to deal with the U.S., U.K. and Canada. Departing the U.K. will scale down the corporate’s operations and potentially prepare it to merge with or acquire one other U.S.-based media asset, reminiscent of A&E Networks or Paramount Global’s BET.
Starz can be folding its Canadian business into its U.S. operations.
Starz ended last quarter with about 12 million domestic streaming subscribers and about 20 million total customers when including those that join through traditional pay TV. The entertainment company has focused on female and Black audiences with series including “Outlander” and “Power.”
Lionsgate is scheduled to report its third-quarter earnings Thursday.
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