Goldman Sachs Comments on Film Studio Layoffs
June 10, 2011 9:04 AM
Several large studios have downscaled their home entertainment operations recently, Goldman Sachs reports, “including Fox (NYSE: NWS), Disney (NYSE: DIS), and Lionsgate (NYSE: LGF).
“Disney plans on laying off 5% of its workforce at the studio, or about 250 people, largely in the home video distribution division,” Goldman Sachs writes. “Fox laid off 4% of its home entertainment staff, while Lionsgate also let employees go as part of a reorganization.
“Viacom's (NYSE: VIA) CEO Philippe Dauman said last week at an investor conference that Paramount continues to focus on reducing its overhead in the face of lower home entertainment revenue.”
Viacom closed Thursday at $57.45; Lionsgate closed at $6.35; Disney closed at $39.37; and News Corp. (which owns Fox) closed at $17.42.
