Sony Pictures to announce layoffs across divisions: source

LOS ANGELES Mon Mar 17, 2014 4:42pm EDT

An entrance gate to Sony Pictures Entertainment at the Sony Pictures lot is pictured in Culver City, California April 14, 2013. REUTERS/Fred Prouser

An entrance gate to Sony Pictures Entertainment at the Sony Pictures lot is pictured in Culver City, California April 14, 2013.

Credit: Reuters/Fred Prouser

LOS ANGELES (Reuters) - Sony Pictures Entertainment on Monday will announce layoffs throughout its studio operations in the United States and abroad, according to a person familiar with the matter.

Among the units that will be hit is the Sony interactive team that supports digital marketing, the source said on condition of anonymity because the information is not yet public.

Under pressure from hedge fund manager Daniel Loeb to improve profitability at its studio, in November Sony hired consultancy Bain & Co to identify more than $100 million in cost cuts through layoffs and other means. It earlier replaced its film marketing chief and said it intended to reduce its film marketing costs.

"We are continuously evolving the business to make SPE more efficient and competitive," said Sony Pictures Entertainment spokesman Charles Sipkins. He said he had no further information on how many people would be affected.

In February, the company said operating income at its Pictures unit, which includes the studio, decreased by 4.2 percent to $231 million. It earned $98 million for the nine months of the year that ended on December 31, the company also said.

(Reporting by Ronald Grover; Editing by Richard Chang)

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Comments (1)
drummer185 wrote:
Back in 1996 I had an interview with the VP of the Sony DVD distribution. During the end of the interview, he asked me what I thought of the future of the video entertainment industry. I opened up and stated I felt the internet would be the new medium for distribution of video and that internet bandwidth would increase exponentially in the coming years to accommodate. He laughed and said, “My eight year old son creates web pages”. I was later then shown the way out of his office.

Mar 17, 2014 9:41pm EDT  --  Report as abuse
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