Tougher market conditions, as well as the impending writers and actors strikes, have forced Creative Planet to lay off an additional 75 employees. Move comes after the company laid off 70 staffers in December.
Security officials watched as employees were handed pinkslips on Tuesday, with many of those affected working in the marketing and content divisions of the business-to-business venture that provides databases, budgeting and scheduling tools for the television and film production communities.
Employees affected by reductions will be paid through the week, and offered four weeks severance pay and health benefits through April. Company has 150 employees remaining and once had more than 300 on its payroll.
Creative Planet said that the layoffs could have occurred in December, but the company was hoping that the economy would improve.
After raising an additional $30 million round of financing in December, Creative Planet is trying to make its financing last as long as possible. But for a company centered around Hollywood and entertainment, the industry’s upcoming strikes are already having an effect on the company’s sales of its software packages and database offerings, including MovieMagic and Studio System.
“We regret the need for reductions, and we are grateful for the work and contributions of the employees affected,” said Allen DeBevoise, CEO of Creative Planet. “The current situation requires greater prudence and fiscal conservatism than ever. These reductions will help ensure Creative Planet’s health through broadening pressures, including an impending industry strike that would impact our bottom line directly, and an economic downturn that constricts banking and capital relationships.”