By : Erik Gruenwedel | Posted: 24 Feb 2010
Citing ongoing financial challenges, Image Entertainment Feb. 24 said it reduced its workforce by 30%, or about 36 people.
The Chatsworth, Calif.-based distributor, in a statement, said the cuts would realize about $4 million in annual savings.
Among the departures was former president and CFO Jeff Framer.
Image, which was acquired earlier this year by investment group JH Partners, said it also renegotiated vendor contracts and trade payable obligations that would generate one-time savings of about $6 million.
“While these changes are difficult overall, they are needed for the long-term viability of the company,” said CEO Ted Green.
He said the restructuring, which is intended to help grow the Image brand and lay the foundation for a return to profitability, includes expanding digital distribution through Egami Media and licensing of content.
“You will see a very aggressive Image, one that right now is positioned very well financially to deal with the future,” Green said.
The CEO said that in addition to the previously announced hiring of senior sales executive Ray Gagnon, Image has hired Alan Fergurson, formerly VP of consumer products and home entertainment with MTV Networks.
Indeed, Image posted a net loss of $2 million in the most recent period, including a 36% drop in revenue to $25.1 million.
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