Sony Entertainment Announce Huge Cuts Of $100 Million To Begin Immediately
The entertainment giant has announced cuts of up to $100 million in a bid to generate more income for the company
Sony Entertainment are currently riffling through their accounts as they look to cut up to $100 million from their budget in the coming months. The entertainment giants are particularly looking to make their filmmaking department more profitable and will begin investigating possible cost cutting exercises in the coming months.
Chief Executive Michael Lynton wants to speed up cost cutting
Sony have been working for some time at trying to get their finances in order and, according to sources speaking with the New York Times, the company have hired consultation group Bain & Company to assess their overheads and help make the cost cutting process easier. The plan to make the company's spending more streamlined will more than likely result in job losses, the company have since confirmed, however they will look to go ahead with the cuts regardless, for the benefit of the company.
Charles Sipkins, a Sony spokesman, released a statement on behalf of the company, but refused to mention any further what after effects the cost cutting will result in. He said, “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.”
Michael Lynton, chief executive of Sony Entertainment, has been working to speed up the cost cutting process since the spring, when the company came under criticism from activist investor Daniel Loeb, who owns roughly 7% of the company. Since then, Sony have managed to cut down spending by reducing their film advertising and fired the president of film marketing in September.
The need to make these cuts has been reflected in the disappointing box office gross some of its films have had over the year, with Smurfs 2 and White House Down being particularly poor performers. More recently however, Captain Phillips and Cloudy with a Chance of Meatballs 2 have managed to recuperate some of this years losses.