“The mechanisms for the monetization of content are in disarray.”
That’s what AMC Networks Chair James Dolan told his employees on Tuesday when he delivered the grim news that a “large-scale layoff,” in addition to “significant” operating cuts, will soon take place at the company. The cuts, first reported by The Wall Street Journal, will amount to 20% of its US workforce, which is roughly 1,700 employees, AMC said.
In his memo to employees, Dolan said it is a “confusing and uncertain time in our industry.” He blamed the grave situation at the network — which was once home to television’s hottest shows, such as “Breaking Bad,” “Mad Men,” and “The Walking Dead” — squarely on cord-cutting.
“At the same time we have seen the rise of direct to consumer streaming apps including our own AMC+. It was our belief that cord cutting losses would be offset by gains in streaming,” Dolan wrote. “This has not been the case.”