Byron Allen's media group is cutting 12% of workforce (its first major layoff in 31 years)

[Jobhunter]

 

Byron Allen’s media conglomerate, Allen Media Group, is set to implement significant layoffs. The workforce reduction will impact approximately 300 employees, which constitutes 12% of the company’s total workforce. This strategic decision marks a first in the company’s 31-year history.

 

Allen Media Group, known for its diverse portfolio including the Weather Channel and 12 cable networks, is reportedly undergoing a $100 million cost-cutting initiative. The layoffs are part of strategic changes aimed at better positioning the company for growth. However, the question arises whether this move is a strategic one or a sign of distress.

 

The Los Angeles-based firm, founded in 1993, has a rich history of acquisitions and growth. In 2021, Allen purchased the Black News Channel at bankruptcy court for $11 million, only to shut it down a year later. The company’s recent bid of $14 billion for Paramount in January, however, did not materialize.

 

The layoffs come at a time when media ad spending, which contributes to more than 60 percent of Allen Media’s revenue, is on the decline. Coupled with rising interest rates on its debt of over $1 billion, the company looks to be facing significant financial challenges.

 

 

 

Read more:

• https://deadline.com/2024/05/byron-allen-allen-media-group-layoffs-1235903150/
• https://www.newscaststudio.com/2024/05/03/allen-media-layoffs-report/
• https://www.hollywoodreporter.com/business/business-news/byron-allen-media-company-layoffs-1235889191/
• https://nypost.com/2024/05/03/media/layoffs-at-byron-allens-media-company-will-hit-12-of-workforce-sources/#

 

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