In a move that has sparked a wave of speculation, Lionsgate Studios, a major Hollywood powerhouse, is offering its U.S.-based employees "voluntary severance" and early retirement options.
This decision comes as the company navigates a turbulent industry landscape, prompting critics to question the role of artificial intelligence (AI) in the restructuring process.
According to Gateway Pundit, the news was confirmed by Lionsgate CEO Jon Feltheimer in a memo. "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 stated. However, the voluntary nature of these severance options could be short-lived, as layoffs might be the next step depending on the uptake of the packages.
Lionsgate Studios, known for blockbuster franchises such as "John Wick," "The Hunger Games," and "Saw," has been grappling with a contracting media and entertainment landscape. The studio's business dealings, including the absorption of eOne (now Lionsgate Canada), have also been cited as contributing factors to its current predicament.
However, it's the studio's recent unprecedented deal with Runway that has drawn significant attention. The Wall Street Journal reported on September 18 that Lionsgate had granted Runway's generative AI models extensive control over its content library. This move was met with skepticism, with critics expressing concerns about AI's potential impact on jobs in the entertainment industry.
"This isn't going to stop and it is only going to speed up," filmmaker Gavin Michael Booth warned on social media following the WSJ report. Critics argue that Hollywood's concern isn't so much about AI infringing on copyrighted material, but rather about the jobs that AI could replace.
However, it's important to note that these severance options have reportedly been in the pipeline for some time and are not a knee-jerk reaction to the company's recent box office performance. This raises the question: Were the AI deal and other similar business dealings part of a strategy to cushion the transition from voluntary to involuntary severance options?
While the full story may never emerge, the timing of these reports has fueled speculation and rumors. This is the last thing Lionsgate, a studio already facing challenges, needs. The role of AI in the entertainment industry continues to be a contentious issue, and this latest development only adds fuel to the fire. As the debate rages on, the future of Hollywood's workforce hangs in the balance.
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