AMC Networks (NASDAQ: AMCX) is set to lay off approximately 20% of its U.S. staff as CEO Christina Spade departs the company with less than three months on the job. A memo was sent by AMC Networks Chairman James Dolan regarding the news. The company’s shares fell over 5% Tuesday afternoon amid the changes.
“We have determined we need to conserve resources at this time,” the company said in a statement to The Wall Street Journal on Tuesday. “This will involve cutbacks in operations which unfortunately includes a large-scale layoff, impacting approximately 20% of our employees in the U.S.”
Dolan told workers that it has been a challenge for the network to offset cable declines, indicating the company’s owned streaming entities like AMC+ and horror platform Shudder. Nevertheless, it revealed that its paid streaming subscribers have grown 44% from the previous year to 11.1 million as of September 30.
“It was our belief that cord-cutting losses would be offset by gains in streaming,” he 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 says that its board is currently contemplating who will be appointed as Spade’s replacement.