Major Hollywood Studio Lionsgate Offering US Workers ‘Voluntary Severance’ After AI Deal Announced: Report

Regardless of how connected the matters actually are, critics of artificial intelligence are going to have a field day with this one.

According to a Monday report from Deadline, major Hollywood heavyweight Lionsgate Studios is offering its U.S.-based employees “voluntary severance” and early retirement options as the company continues to restructure amid a turbulent industry landscape.

Deadline obtained a memo from Lionsgate CEO Jon Feltheimer, confirming the news.

“We are offering Lionsgate U.S.-based employees a voluntary severance and early retirement program that will allow us to adapt our workforce to the disrupted business environment,” Feltheimer wrote in the memo.

As to just how “voluntary” these severance options are, Deadline noted, “as these things go, layoffs could be a next step depending upon how many staffers take up the packages, which are focused at Lionsgate Studios.”

Deadline attributed a number of reasons for why the Hollywood studio — known for some blockbuster franchises like “John Wick,” “The Hunger Games,” and “Saw” — decided to start down this path.

A “contracting media and entertainment landscape” is one reason given, as is the studio’s business dealings, like when it “absorbed” eOne (now Lionsgate Canada).

Another recent business dealing that Lionsgate was in the headlines for? An unprecedented deal with Runway, a “first-of-its-kind”deal that was reported on by the Wall Street Journal on Sept. 18.

Do you still frequent theaters?

That deal, which gave Runway’s generative AI models nebulous and wide-reaching powers over Lionsgate’s content library, was met with a less-than-enthused response from onlookers.

One common critique is that Hollywood isn’t as worried about AI stealing copyrighted material as it is of having its own AI doing its bidding.

Others, perhaps presciently, were more worried about whatever jobs that AI would take from workers in the entertainment industry.

Related:

Actor Keanu Reeves Involved in Crash at Motor Speedway

“This isn’t going to stop and it is only going to speed up,” filmmaker Gavin Michael Booth lamented on social media shortly after the WSJ report came out.

Now, it is worth mentioning that Deadline is reporting that these severance options have reportedly “been in the works for some time and are not related to the company’s recent bum box office run — although that likely hasn’t helped.”

That, in turn, does beg the question: If these weren’t spontaneous reactions, were the AI deal and other similar business dealings meant to help mitigate the inevitable transition from “voluntary severance” options to involuntary ones?

The truth of the matter may never come to light, but the timing of these reports naturally lends itself to murmurs and hearsay.

And that’s the last thing an already struggling studio needs.

Bryan Chai has written news and sports for The Western Journal for more than five years and has produced more than 1,300 stories. He specializes in the NBA and NFL as well as politics.

Bryan Chai has written news and sports for The Western Journal for more than five years and has produced more than 1,300 stories. He specializes in the NBA and NFL as well as politics. He graduated with a BA in Creative Writing from the University of Arizona. He is an avid fan of sports, video games, politics and debate.

Birthplace

Hawaii

Education

Class of 2010 University of Arizona. BEAR DOWN.

Location

Phoenix, Arizona

Languages Spoken

English, Korean

Topics of Expertise

Sports, Entertainment, Science/Tech

Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.



Source link