Joe Public

How Will Lionsgate Shareholders React to Icahn's Latest Offer?

I was doing the math to see how 45 jobs could equate to a $20 million annual savings. That would come out to an annual savings of $444,444 per person, which seems kind of high even for the movie industry.

I went back and checked the AP story on this and found that LGF is eliminating 45 positions by letting 27 people go and not filling 18 vacancies, which gives the 8% reduction figure. According to the AP, "combined with a move last year to trim 41 staff positions, the cuts will save $15 million to $20 million a year off corporate overhead of about $135 million." According to the Daily Variety from November 10, the 41 positions consisted of 17 people let go and 24 open positions being deallocated.

So LGF's actual savings is probably around half of the reported range, which would be $9 million (rounded), using the $15-20 million range of savings compared to budget. That's worthwhile, but not as dramatic as the figure initially reported.

Also, I wonder if LGF will rehire any of these people as contractors? That would simply mean that LGF is moving expenses from one bucket to another. I have no knowledge of this, I'm just conjecturing.