AMC Networks Will Incur Restructuring-Related Programming, Severance, And Other Fees Totaling Up To $475 Million

AMC Network announced today that as it restructures its company to save costs, it will accept write-downs of up to $475 million. This includes $75 million for organizational restructuring costs, including severance pay, and up to $400 million for content it refers to as “strategic programming assessments.”

The Dolan-controlled company saw a shakeup on Tuesday when CEO Christina Spade resigned and the company revealed plans to fire 200 employees, or 20% of its U.S. workforce. The main points of the grim memo that Chairman James Dolan sent to the staff were repeated in an SEC filing today. In light of “cord cutting” and the effects it is having on the media sector, as well as the overall economic picture, it was stated that AMC Networks began a restructure on November 28. The strategy includes projects that will cover costs associated with organizational reorganization and analyses of strategic programming, among other things.

The “programming assessments pertain to a broad mix of owned and licensed content, including legacy television series and films that will no longer be in active rotation on the company’s linear or digital platforms,” according to the statement. It’s unclear which titles will be affected.

“Some future licensing and other revenue associated with some of the owned titles” may be realized by AMC.

To break it down, the company expects to incur $350 million to $475 million in pre-tax restructuring charges, which will include: strategic programming assessments leading to content charges of $300 million to $400 million; and organizational restructuring costs, including severance, retention, and other costs, of $50 million to $75 million.

David Stefanou, SVP Original Programming & Development for WE tv, who led the development team in creating shows such as the hit Love After Lockup franchise; and Marco Bresaz, SVP of non-fiction & alternative programming for AMC and SundanceTV, who helped oversee both networks’ original non-fiction programming development and their portfolio of current non-fiction programming, are among those leaving as part of the layoffs.

The estimated cash expenditures resulting from the restructuring are estimated to be in the range of $75 million to $100 million, with the majority of them occurring in 2023.

AMC Networks Will Incur Restructuring-Related Programming, Severance, And Other Fees Totaling Up To $475 Million

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