Metro-Goldwyn-Mayer begins layoffs ahead of bankruptcy exit
So much for a merry Christmas at MGM.
As it prepares to exit bankruptcy and restart operations under new management, Metro-Goldwyn-Mayer has started laying off staffers. As many as 50 people out of the studio's 400 employees are being let go Friday.
Most of the cuts are coming from theatrical distribution, marketing and post-production, a person familiar with the matter said. They would have little to do, as MGM won't begin releasing movies again until 2012.
The job cuts were expected. Spyglass chief executives Gary Barber and Roger Birnbaum, who will run the new MGM, are looking to reduce overhead costs. In the studio's bankruptcy filing last month, MGM said it would slim down to about 320 employees in 2011.
MGM is expected to exit bankruptcy shortly, once it closes a $500-million credit facility that will be used for operations and film production.
-- Ben Fritz