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Thursday, Mar 28, 2024

Hallmark Hit With Layoffs

About 25 employees from the Hallmark Channel were laid off this week as part of a cost-cutting measure by its parent company, Crown Media Holdings, Inc. The layoffs happened in all departments at four of the cable distributor’s offices, including its main one in Studio City, a spokeswoman said. “Unfortunately we have to look at all areas of the company,” spokeswoman Nancy Carr said. “We have to take steps that are necessary to improve profitability.” Most of the employees were let go by Tuesday while others “will be here for a little while,” Carr said. A severance package provided to the employees was “very fair with everybody,” Carr added. Offices in New York City, Detroit and Denver were also affected by the layoffs. The layoffs are part of the strategy being employed by Crown Media following its April 17 announcement that it had taken itself off the market and committing resources to operating its channels, video on demand and high definition programming services. The board of directors for Crown decided in August to explore strategic alternatives for the company, including sale to a third party. But on April 17, the company announced that after meetings with interested parties and pursuing other alternative, continuing to operate on its own was the best course of action. “The board determined that the greatest value for our shareholders will be derived by our continued operation of the business,” Crown President and Chief Executive Officer David Evans said. “Given the record ratings results, subscriber growth, and solid advertising and subscriber fee revenue increases we have been able to achieve, we believe that the underlying business fundamentals are in place to enhance the value of Crown Media by building a more successful business.” In its most recent earnings statement, Crown reported cutting its losses in the fourth quarter ending Dec. 31, reporting a net loss of $59.8 million, or $0.57 per share on sales of $60.5 million. For the full year of 2005, Crown Media’s lost $232.8 million or $2.22 per share versus $316.8 million or $3.03 per share for the 2004 year. Full year sales totaled $197 million in the current period, up from $138.2 million a year ago.

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