Lionsgate Lays Off 10% of eOne Employees Ahead of Merger Closing Final Week of December
Lionsgate has laid off 10% of Entertainment One’s (eOne) workforce ahead of the closing of the merger between the two companies, which is expected to be finalized the last week of December, a source tells Variety.
It should be noted that layoffs previously hit eOne in June, when then-parent company Hasbro reduced the studio’s staff by 20% amid its preparation to sell the asset — meaning this week’s cuts hit an already depleted group of employees.
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In August, Lionsgate struck a deal to purchase eOne‘s TV and film operations from Hasbro for $500 million. The sale news came nearly four years to the date when Hasbro announced their intent to acquire eOne in a $3.8 billion deal in August 2019.
Representatives for eOne and Lionsgate did not respond to request for comment on the layoffs Friday.
When Hasbro first revealed plans to sell its eOne assets last November, the toymaker noted that the sale would include the parts of the indie studio’s TV and film operations “not directly supporting the company’s branded entertainment strategy” and that Hasbro would “maintain the capability to develop and produce animation, digital shorts, scripted TV and theatrical films for audiences related to core Hasbro IP.”
Popular IP excluded from the deal includes “Peppa Pig,” “Transformers,” “Dungeons & Dragons,” “Magic: The Gathering,” “My Little Pony,” “Power Rangers,” “Play-Doh” and “Clue.” (The pact does include film development rights for “Monopoly.”)
Under Hasbro’s control, eOne announced in 2021 it would be laying off 10% of its film and television staff, followed by the sale of the studio’s music division to The Blackstone Group for $385 million. By early 2023, Hasbro revealed that it would be laying off some 15% of its global headcount, some 1,000 positions. In July, eOne shut down its U.K. theatrical distribution business.
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