Fox, Offering Buyouts, Targets $250 Million in Cost Cuts
February 01 2016 - 3:50PM
Dow Jones News
21st Century Fox is offering buyouts at its film studio and
television networks group in an attempt to cut $250 million in
expenses in the next fiscal year, according to a person familiar
with the matter.
The voluntary buyout plans were announced to staff in memos sent
out Monday.
"Our industry is changing rapidly, presenting new challenges and
even more opportunities at every turn," wrote Peter Rice, the chief
executive of Fox Networks Group, in a memo to staff. "To ensure we
make the most of this new world, we need to adjust, adapt, and
organize for the future. With this in mind, through the remainder
of this fiscal year, we will be undertaking some structural
changes, increasing investment in some parts of the company while
making cost reductions in other areas."
Jim Gianopulos, CEO of the Twentieth Century Fox film studio,
sent a similar memo to his staff, saying that the studio was
"reviewing our organizational structure and looking at potential
cost reductions to position us for sustained growth." He added that
"colleagues who have extended tenure" will be offered "an enhanced
benefit package if they elect to voluntarily resign form the
company effective at the end of May 2016."
21st Century Fox and Wall Street Journal owner News Corp were
part of the same company until mid-2013.
Write to Joe Flint at joe.flint@wsj.com and Keach Hagey at
keach.hagey@wsj.com
(END) Dow Jones Newswires
February 01, 2016 15:35 ET (20:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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