Report: Sony Entertainment Looking at $100 Million in Cuts

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Disclosure comes ahead of Thursday investor day

Sony Entertainment, under pressure from a key investor to boost profitability, is reviewing ways it can find “further efficiencies,” a process that the New York Times reported on Monday will result in an estimated $100 million or more in overhead cuts and potential layoffs.

The Times said that Sony Entertainment CEO Michael Lynton was likely to announce that Bain & Co. would help it identify the cuts at an investor meeting scheduled for Thursday on the studio lot.

Charles Sipkins, a spokesman for Sony, said in a statement: “As part of a nearly four-year process of increasing financial discipline, Sony Pictures is conducting a review of its business to identify further efficiencies. Our object is, and always has been, to operate an efficient studio that is uniquely positioned to capitalize on further growth opportunities.” He declined further comment.

Sony’s studio operations came under further scrutiny in May, when Third Point’s Daniel Loeb proposed the idea of spinning off those assets as a way of boosting transparency and accountability, criticizing the studio for lagging behind competitors in profitability. He struck a more conciliatory tone after the spinoff offer was rejected but told Variety that he still expected “more disclosure and a more detailed plan for how they will improve profitability in their entertainment division, including specific profitability targets.” Third Point has acquired about 7% of Sony.

A spokeswoman for Loeb and Third Point said they had no comment.

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  1. Carla Marshall says:

    Call me! I have the perfect plan in place to generate revenue for Sony entertainment! You put people in charge that are not willing and available to hear new ideas for programming. I’m a creative writer with a MASTER PLAN, and plenty of great material that’s ready for production….Thanks!

  2. Shu says:

    Actually the Ps4 has tons of nice features :

    – Can do morse code on the wobbly side of Ps4
    – The most realistic jumbo jet engine sound FX to date
    – Highest performance thermal heater
    – Awesome shape morphing HDMI port
    – In some cases, Electrocution comes FREE with $10 insurance
    – Up to 50% more power on epic freezes
    – Next-gen Error screen in 1080p60 guaranteed
    – Brick friendly, save money on your home makeovers
    – It makes you get closer to God (or Satan) personally
    – … anything else that Sony forgot to tell.

    So yeah Sony was right, the Ps4 is jam-packed in features!

  3. JP says:

    It is so sad that everyone always follows suit with the genocidenous monsters here to destroy. Greed is the its name. Be ashamed, really ashamed. Damn you greed !

  4. G.P. says:

    Nothing but shareholder greed at the expense of Art.

  5. E.V. says:

    Here’s an idea: All big business should just pack up, fire everyone below the board, ship everything overseas.

  6. Jim says:

    Report: Sony Entertainment Looking at $100 Million in Cuts

    STOP BUILDING OFFICE BUILDINGS ON THAT OLD MGM LOT! AND FIRE AMY PASCAL!

    I remembered back in 2003, Sony Japan issued a memo to all that carries the Sony about killing 20,000 between 2003 and 2006 to stay in the black ink.

    “Oh I don’t care if this movie makes a dollar at the box office, I had a lot of fun making this movie!” Then the sequel to the first Charlie’s Angels movie, bombed!

  7. Glenn C. says:

    How about just cutting the top heavy executives that are getting paid too much! That’s easily millions there! They don’t too much anyway but mostly make bad decisions!

  8. Michael says:

    So Sony has profits? Just not enough? Fuck the 1%

  9. Robbie Goldstein says:

    So much for Clooney ‘s opinions on that investor just staying put. The studio is up for sale. Lean and mean the top brass come out with a huge payoff and the employees get shafted. Bain will say do you really need Screen
    Gems.. Duplication of resources and good bye.
    Sign of the times.. One way for Romney to get back at Hollywood just shut it down. God Bless the good wishes of George..

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