Oprah Winfrey: Laying Off 20 Percent of OWN's Employees Is a Necessary Step


Oprah Winfrey


The cable channel cuts 30 staffers and replaces executives since it is making a budget adjustment and restructuring its operations in Los Angeles and New York.

In its struggle to gain viewers, Oprah Winfrey's network OWN has laid off 30 employees or 20% of its workforce on Monday, March 19. The move was taken as part of a restructuring and budget adjustment, so the network announced.

"It is difficult to make tough business decisions that affect people's lives," OWN's CEO and chief creative officer Winfrey explained. "But the economics of a start-up cable network just don't work with the cost structure that was in place."

"As CEO, I have a responsibility to chart the course for long-term success for the network. To wholly achieve that long-term success, this was a necessary next step," she went on stressing.

Echoing Winfrey's statement, OWN's president Erik Logan said, "We have been on the air for 15 months, and since September we have gained momentum in ratings and viewership. Restructuring our business will allow us to build a solid foundation for long-term growth."

As a result of the major restructuring, executives from Discovery Communications will be brought in to oversee key operations. Among the high-profile layoffs, which took place both in New York and Los Angeles offices, is SVP Production Julie Stern.

Additionally, COO John MacDonald has declined to renew his contract. He will only stay through May to help with the transition. Discovery's CFO Neal Kirsch will fill in MacDonald's shoes in addition to serving as chief financial officer at OWN.

Just days before announcing the layoffs, OWN canceled Rosie O'Donnell's talks show "The Rosie Show". The program debuted in October 2011 with 497,000 viewers, but the number has since declined with the show averaging 204,000 viewers as of early March.

© AceShowbiz.com


MORE FROM NEWS

Leave a Comment

Required fields are marked with *

   

TODAY'S HEADLINES

  1. Jenna Dewan Having 'Big Fight' With Channing Tatum Over Her Nude Photo
  2. Chris Brown and Rihanna May Start Hooking Up Again After Spotted Hanging Out Together
  3. Khloe Kardashian Is 'Thrilled' She's Expecting First Child With Tristan Thompson
  4. Brad Pitt Reportedly Moving In With Kate Hudson Amid Angelina Jolie Divorce
  5. Jennifer Lopez Breaks Silence on Her Relationship With Drake
  6. Is Charlize Theron's Adopted Son Becoming a Girl? He Wears Box Braids and Pink Outfit
  7. Kim Kardashian 'Had a Secret Fling' With 'Celebrity Big Brother' Star Calum Best
  8. Report: Angelina Jolie Is Forced to Hand Over Kids to Brad Pitt
  9. Kim Kardashian Did Want to Divorce Kanye West. Here's Why She Stays
  10. Nicki Minaj and Meek Mill Apparently Only Fake Their Breakup

CELEBS PHOTO