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AMC Networks plans layoffs as CEO steps down after lower than three months

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Christina Spade attends The Hollywood Reporter, SAG-AFTRA and Heineken Rejoice Emmy Award Contenders at Annual Nominees Night time on September 10, 2022 in West Hollywood, California.

Michael Kovac | The Hollywood Reporter | Getty Photographs

AMC Networks instructed its staff Tuesday that it’s planning important layoffs, in response to a memo obtained by CNBC and an individual acquainted with the matter.

The memo, despatched by AMC Networks Chairman James Dolan, got here shortly after the corporate introduced that CEO Christina Spade stepped down from her function lower than three months after being promoted to the place.

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“It was our perception that twine slicing losses could be offset by positive aspects in streaming,” Dolan stated within the memo. “This has not been the case. We’re primarily a content material firm and the mechanisms for the monetization of content material are in disarray.”

The layoffs are anticipated to be important. The Wall Road Journal earlier reported that layoffs would happen. An AMC Networks spokeswoman did not instantly reply to remark.

The cable TV community stated in a regulatory submitting Tuesday that Spade will obtain her severance cost in accordance along with her Aug. 4 employment settlement, which stated she’d be eligible for it if terminated with out “trigger” or if she resigned for “good cause.”

An organization spokeswoman declined to supply additional particulars. AMC Networks shares had been down about 5% Tuesday.

AMC stated in a press release that its board is finalizing its choice for Spade’s alternative.

“We thank Christina for her contributions to the corporate in her CEO function and her earlier CFO function, and we want her effectively in her future endeavors,” Chairman James Dolan stated within the assertion. AMC Networks is managed by Dolan and his household, which additionally owns Madison Sq. Backyard Leisure.

Spade joined AMC Networks in 2021 as chief monetary officer and some months later was promoted to the twin function of chief working officer and CFO. In August, lower than a yr later, the corporate introduced she would take over as CEO.

Spade, an trade veteran who beforehand held high positions at ViacomCBS, CBS Corp. and Showtime, changed interim CEO Matt Clean at AMC Networks.

Clean, the previous chairman of Showtime, had taken over in 2021 after Josh Sapan left the corporate following a 26-year run that noticed the community rework right into a hitmaker with sequence resembling “Mad Males” and “The Strolling Lifeless.”

Lately, AMC Networks has been seen as an acquisition goal for bigger media firms. Along with its profitable run of TV exhibits, it has area of interest streaming companies resembling AMC+ and the horror-focused Shudder.

AMC has additionally been eyed by NBCUniversal’s Peacock, which has approached varied smaller streaming companies about bundling their content material, CNBC beforehand reported.

Learn the memo beneath:

AMC Networks Neighborhood:
As I’m certain you’re conscious our trade has been underneath stress from rising subscriber losses. That is primarily attributable to “twine slicing.” On the similar time we now have seen the rise of direct to client streaming apps together with our personal AMC+. It was our perception that twine slicing losses could be offset by positive aspects in streaming. This has not been the case. We’re primarily a content material firm and the mechanisms for the monetization of content material are in disarray.
It’s for that cause that myself and the Board of Administrators of AMC Networks have concluded that we as an organization must preserve our sources presently. We have now directed the manager management of AMC Networks to bear important cutbacks in operations. These will embody a large-scale layoff in addition to cuts to each working space of AMC Networks. We in fact notice that this may trigger important concern and anxiousness for our staff and those that depend on AMC Networks for his or her livelihood. We don’t take this frivolously. We are going to take each step attainable to reduce the affect of those actions on our neighborhood. Nevertheless, it’s crucial that we start instantly with this new plan of action.
The Dolan Household and the Board of AMC Networks have nice pleasure within the firm and merchandise that you’ve got created. This can be a complicated and unsure time in our trade. We’re assured that AMC Networks will come by way of this even stronger. Your govt management will observe up with particulars shortly. We want solely the very best for everybody within the AMC Networks neighborhood.
Sincerely,
James Dolan

Disclosure: Comcast’s NBCUniversal is CNBC’s mother or father firm.

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