Following the head rush of its $500 million acquisition by the Walt Disney Co., Maker Studios is now facing the downside of the deal: reportedly trimming away 10 percent of its 380 employees. The multichannel network may issue pink slips this week.
According to Variety, the reason for the layoffs isn't clear.
A refinement of Maker Studios' direction and content may be driving the cuts, the Variety article speculated. The MCN will be the main promotional platform for Disney properties like "Star Wars."
Another speculation is that Disney wants to quickly recoup its investment in the YouTube MCN and is likely removing any overlapping positions in the company. However, Maker Studios operates independently, sources said, and any decisions on layoffs--and the reasons behind them--will be made by the company.
Maker also appears to be turning and taking on YouTube directly, announcing maker.tv, a consumer-facing video hub, at the Digital Content NewFronts event in late April.
For more:
- Variety broke this story
- Adweek has this story
Related articles:
Big studios eye multichannel networks, but price may not be right
Disney, MSG shore up content with key acquisitions
Rumor mill: Disney in talks to buy Maker Studios for $500M
Updated June 4 to clarify Maker's operating status.