Under pressure from hedge fund manager Daniel Loeb to improve profitability, Japanese entertainment and electronics giant Sony will reportedly cut employees across its studios operations in the U.S. and abroad.
Sony Pictures Entertainment spokesperson Charles Sipkins told Reuters that the company is “continuously evolving the business to make SPE more efficient and competitive.”
Loeb, whose New York-based hedge fund firm Third Point is a 7% shareholder of Sony, pushed for the company to break off its entertainment unit last year to bolster the Sony’s share price. Sony, in response, hired consultancy Bain & Co. in November to identify more than $100 million in cost cuts through layoffs and other means.
Third Point manages about $10 billion in assets.