The John Lesher era at Paramount Classics has begun with the ouster of more than one-third of the specialty division's staff, sources said. Four executives and two assistants were notified of the move, which is effective Dec. 31.

When reached for comment, Lesher said he couldn't confirm or deny the layoffs but added that change was afoot at the Paramount Pictures art house label, which is soon to be renamed. Sources said Lesher, a former Endeavor agent who was named president of Paramount Classics last month, is clearing the decks in an effort to surround himself with people he is comfortable with, much as Paramount Pictures chairman and CEO Brad Grey has done through an executive suite housecleaning at the Melrose lot.

The Orphanage's Amy Israel, a former acquisitions executive at Miramax Films, is believed to be a front-runner for the Paramount Classics head of acquisitions post. Surviving distribution chief Rob Schulze and acquisitions veteran Joe Matukewicz are expected to attend the Sundance Film Festival next month. A marketing hire also is in the works as Lesher beefs up his staff.

The Paramount Classics pink slips come on the heels of another pair of layoffs affecting the specialty label. In an effort to end duplication of job functions, Rob Moore, Paramount president of marketing, distribution and worldwide operations, has shuttered the three-person Paramount acquisitions department led by Susan Glatzer, with one employee being reassigned to Paramount Classics. Now, if Lesher's people find a project that is an appropriate acquisition for Paramount Pictures rather than the specialty division, they will pass that project along to Moore. Paramount Home Video already has its own acquisitions executive, studio sources said.