Layoffs Hit Machinima Following Warner Bros. Funding
The company has laid off 13 production employees from shows that include 'Respawn' and 'TFTW.'
Machinima cut its staff by about 14 percent on Friday, one day after announcing a $24 million investment led by Warner Bros.
The company has laid off 13 production employees from shows such as Respawn, TFTW and certain programs on Machinima LIVE. "As Machinima positions itself for the future, we must focus resources toward high-growth opportunities," reads a statement from a company spokeswoman. "This content was simply not delivering the monetization that supports our path to profitability. Machinima is in development on its expanded 2015/16 original programming slate, details of which will be unveiled at its Newfront presentation on May 4. Separately, the company also has 15 open positions associated with programming, talent development, business intelligence, sales, marketing, product development and engineering."
Machinima has undergone several rounds of layoffs in the last two years, but this was the first round conducted under CEO Chad Gutstein, who joined from Ovation in March last year. Gutstein has focused on repositioning Machinima as a fandom and gaming-focused digital media programming company.
The infusion of cash from Warner Bros. and other existing investors will be put toward the technology and content businesses, Gutstein announced Thursday. It was the second round of funding led by Warner Bros.