IMAX Announces Layoffs as Part of Cost Reduction Plan

Posted Mon Jun 12, 2017 at 07:30 PM PDT by
imax logo

The company is cutting its workforce to save costs.

IMAX has announced a new cost reduction initiative marked by layoffs and a share repurchase program aimed at increasing the company's value. The decision comes in the wake of four consecutive quarters of declining per-screen attendance.

"We are committed to expanding our theatre network, pursuing new initiatives and delivering value to shareholders," said IMAX CEO Richard L. Gelfond. "Our confidence in the Company's growth prospects is underscored by our recent buyback activity, and by today's announcement of an additional buyback program for up to $200 million. A more streamlined cost structure will enable us to scale our business with increased efficiency and facilitate operating leverage during both strong and weak periods of box office. It also affords us the bandwidth to pursue important new initiatives, including original content and virtual reality."

As part of the initiative, IMAX will be cutting 100 full-time positions, including jobs at IMAX China. In total, the reduction will be equal to roughly 14% of the company's full-time global workforce, and is set to help reach approximately $20 million in annualized cost savings. In addition, IMAX's new share repurchase program will authorize the repurchase of up to $200 million of its common shares by June 30, 2020.

IMAX's dropping attendance comes as theater configurations with reclining seats and competing premium formats like Dolby Cinema continue to expand their presence in the market. Beyond IMAX's large-screen theatrical installations, the company recently launched new IMAX VR Centers in New York and LA, offering immersive Virtual Reality experiences with room-tracking technology, single-player and head-to-head multiplayer competitions, advanced VR headset technology, and control devices with lifelike haptic feedback.

Sources: IMAX, Deadline

See what people are saying about this story in our forums area, or check out other recent discussions.

Tags: IMAX, theaters (all tags)