Starz, the premium network and streaming service, has announced plans to lay off over 10% of its employees and exit the United Kingdom and Australia. The CEO of Starz, Jeffrey Hirsch, revealed the news in an email to staff, stating that the restructuring aims to align the organization with the growth areas of the business and prepare for its upcoming separation from Lionsgate’s studio. The cuts will be in the high double-digits but less than 100, according to insiders familiar with the matter. The decision to exit the UK will downsize operations and potentially open up opportunities for mergers or acquisitions with other US-based media assets.
Lionsgate acquired Starz in 2016 for $4.4 billion, but the two companies will now split in the first quarter of next year. The move to become a standalone company will enable Starz to focus on its key markets: the US, Canada, and the UK. In addition, Starz plans to merge with or acquire another US-based media asset, such as A&E Networks or Paramount Global’s BET. By exiting Australia and the UK, Starz aims to streamline its operations and position itself for future growth.
Starz, known for its popular series like “Outlander” and “Power,” will continue to serve its approximately 12 million domestic streaming subscribers and 20 million total customers, including those who access its content through traditional pay TV. The company’s focus on female and Black audiences has contributed to its success in the highly competitive streaming industry. Lionsgate will announce its third-quarter earnings soon, which will shed more light on the financial implications of the split.
