Shortly after AMC Networks CEO Christina Spade stepped down after less than three months in the role, the entertainment company’s chairman James Dolan forecasted “a large-scale layoff as well as cuts to every operating area.”
According to people familiar with the matter the entertainment company told its employees Tuesday that layoffs are expected in the coming days. About 20% of its U.S. staff will be impacted by the move.
“It was our belief that cord cutting losses would be offset by gains in streaming,” Dolan wrote. “This has not been the case. We are primarily a content company and the mechanisms for the monetization of content are in disarray.”
AMC Networks had more than 1,700 full-time employees and 287 part-time employees as of the end of last year.
Earlier this fall, Spade told employees layoffs wouldn’t take place until next year and the company would hire a consulting firm to further assess the business. Shortly afterward the company ruled out bringing a consulting firm as layoffs appeared to be imminent.
AMC Networks has been hit as customers are moving into streaming services. Quarterly revenue dropped 16% to $682 million in the period ended Sept. 30.
AMC Networks shares were down more than 4% Tuesday.
The company said its board is finalizing its decision for Spade’s replacement.