eOne cuts workforce again ahead of Lionsgate’s $500m acquisition

Yellowjackets

Entertainment One (eOne)’s workforce is being cut again, ahead of the completion of its $500m acquisition by Lionsgate expected later this month.

US reports have differed on the total number of lay-offs, with some claiming that up to 10% of staff will be let go while others suggest it will only be a single-digit percentage.

The move is the second round of cuts to hit eOne this year, after the Yellowjackets group slashed 20% of its staff in June, prior to owner Hasbro striking the sale to Lionsgate.

Peppa Pig

The news comes as that $500m deal struck in August nears its formal completion, which is expected to be in the final week of December.

eOne employees are understood to have been told who will now be part of the new set-up under Lionsgate, with others due to exit after transition periods.

The deal with Lionsgate came just three years after it acquired the TV and film company for $4bn and amid a shift in strategy for the toyco, which had spent months searching for a buyer.

Lionsgate will pick up control of a 6,500-hour content library including shows such as Grey’s Anatomy and Criminal Minds but not Peppa Pig and My Little Pony.

In October, Hasbro revealed plunging revenues at eOne as a result of the US writers and actors strikes.