AMC Networks said that the restructuring plan that includes laying off 20% of its staff will result in pre-tax charges of between $350 million and $475 million.
In a filing with the SEC Thursday, the company said the costs will include “strategic programming assessments” leading to content charges of $300 million to $400 million and organizational restructuring costs, including severance, retention and other costs, of about $50 million to $75 million.
AMC said the restructuring efforts are "ongoing" and could result in additional charges.
The company said it expected the process to be completed by the end of 2023.
AMC on Tuesday announced that recently named CEO Christina Spade had stepped down and then chairman James Dolan sent a memo to staff warning that “large scale” layoffs were in the offing.
In its SEC filing, AMC said the restructuring was made necessary as the result of “cord cutting” and the related impacts being felt across the media industry as well as the broader economic outlook.
The company said that the “programming assessments pertain to a broad mix of owned and licensed content, including legacy television series and films that will no longer be in active rotation on the Company’s linear or digital platforms. The company may realize some future licensing and other revenue associated with some of the owned titles.” ■
