Fox to reduce workforce; targets $250 million in budget cuts

Source: LA Times

21st Century Fox intends to trim its West Coast workforce to help reach $250 million in cost cuts this year at its TV networks and film studio.

Fox's corporate bottom line has been under increased pressure because of higher programming and marketing costs. In addition, several of Fox's TV networks have grappled with lower ratings and lower advertising revenue.

The dramatic cuts — announced Monday — reflect an increasingly turbulent media environment. Consumers are migrating to digital platforms for entertainment and canceling or scaling back their traditional pay-TV subscriptions. That means less revenue for Fox and other programming companies that rely heavily on cable programming fees for profits.

"Our industry is changing rapidly, presenting new challenges and even more opportunities," Fox TV Networks Chief Executive Peter Rice wrote in an email sent Monday to TV employees to notify them of the staff cuts.

Read more: http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-fox-workforce-reductions-250-million-20160201-story.html