Sony Pictures Entertainment is restructuring its business with plans to cut hundreds of jobs across its film, television and corporate divisions.
Sources tell Variety that layoffs, which are expected to cut “several hundred” of the organization’s 12,000 employees worldwide, are currently underway and expected to continue over the coming months.
One notable change at the executive level at Sony Pictures Entertainment is the departure of Colin Davis, vice president of comedy development, Variety has confirmed.
People close to the decision-making process say the cuts are not a “cost-driven initiative” but rather a “targeted strategic” choice for growth in several key areas, including franchise strategy and brand expansion (including game shows), animation, experiences, next-generation content, platform-native content and leveraging YouTube, and the Sony Group’s ecosystem connectivity, including video game adaptations.
The reorganization was announced by Sony Pictures Entertainment CEO Ravi Ahuja in a memo to staff on Tuesday, which was obtained by Variety.
As part of the reorganization, Sony’s Game Show Group will be combined with GSN under Game Show President Suzanne Plate. Additionally, as previously announced, Sony Pictures Television’s non-fiction division will be transferred to TV studio president Catherine Pope, and Sony will close down its VFX company Pixomondo.
“Over the past year, we have refined our strategy and defined where we believe the greatest opportunities lie,” Ahuja wrote. “As we lean toward these priorities, we need to operate with greater focus, speed, and alignment to strengthen our differentiated capabilities. To support our growth, we are aligning our organization with where our business is going, rather than where it has been. This requires us to change our organizational structure and where we invest. As a result, we are reducing our roles in certain areas while increasing our focus and investment in other areas that are most important to our future. These are difficult decisions that will impact our talented people. The P&O team is committed to supporting them through this transition. ”
Ahuja was appointed CEO of Sony Pictures Entertainment in January following the retirement of Tony Vinciquerra, the company’s longtime head.
Under Ahuja, the company is prioritizing its recent acquisition of the Peanuts IP, a new deal with Big Shot Pictures, adaptations of PlayStation’s hit video games (HBO’s “The Last of Us,” Amazon’s upcoming “God of War” TV series), and further expansion of popular TV and movie universes including “The Boys,” “Spider-Man,” “Ghostbusters,” “Outlander” and “Jeopardy!”
See Ahuja’s full memo to staff below.
good morning,
Today, we hear about changes that are starting to unfold across the company. I’d like to share some background on how I’m improving our organization for the next stage of growth.
Over the past year, we’ve honed our strategy and defined where we think the greatest opportunities lie. As we focus on these priorities, we must operate with greater focus, speed, and coordination to strengthen our differentiated capabilities. To support our growth, we are aligning our organization with where the business is going, not where it has been. To achieve this, we need to change our organizational structure and where we invest.
This allows us to reduce our role in certain areas, while increasing our focus and investment in other areas that are most important to our future. This means that some of our colleagues will leave the company. These are difficult decisions. They impact talented people who have contributed meaningfully to our work and culture. We appreciate their contributions and our P&O team is committed to supporting them through this transition.
We understand that changes like this can be scary and raise questions. Over the coming months, business leaders will share more detailed information as plans and priorities take shape. We’ll also be holding another check-in later this month to talk more about what’s coming and answer your questions.
We are uniquely positioned at this time as the industry around us continues to evolve. The proven value of our independent TV and film studios allows us to move flexibly with the market, partner with a wide range of partners, match projects with the right platforms, and help our creative partners bring great stories to life. Additionally, we are supported by strong franchises and brands. Our ties to the broader Sony Group ecosystem will also enable accelerated growth in anime and gaming IP adaptations.
This organizational change is aimed at pivoting the company to succeed in a changing industry. By aligning our structure and resources more closely with our strategic priorities, we will move forward with more clarity and momentum and become better prepared for innovation and resilience.
Thank you for your continued efforts and mutual support.
Ravi
