Alamo Drafthouse Hit With Layoffs; Slow Box Office Season Cited

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Alamo Drafthouse has become the latest media company to endure a round of layoffs.

The popular theater chain had company-wide downsizing on Tuesday.

Seven months following its acquisition by Sony Pictures Entertainment, the move has been made by the Austin-based cinema operation, which manages 35 cinemas spread across 25 urban regions.

According to reports, the layoffs affected two different sectors. In the corporate division, around 9% of the workforce was dismissed as part of a restructuring aimed at making the company more efficient. On the other hand, a number of employees in the store sector were let go in anticipation of a predicted downturn at the box office during the upcoming months. One insider characterized these layoffs as seasonal staff reductions, which typically occur after the busy holiday period and before the traditionally quiet first quarter. However, some employees on Reddit suggest that this year’s cuts are more substantial, with up to 30 people being laid off at each location.

A Redditor reported that Alamo Drafthouse Cinema unexpectedly let go of numerous employees company-wide, citing a slow season and corporate reorganization as reasons. It’s said that more than 30 employees from the Redditor’s specific location will be losing their jobs.

For the upcoming months, there won’t be many big-earning movies (except for the upcoming Marvel film, “Captain America: Brave New World”), but the summer is anticipated to bring numerous successful films like “Superman”, “Mission: Impossible – The Final Reckoning”, “The Fantastic Four: First Steps”, “Jurassic World Rebirth”, and the live-action adaptation of “How To Train Your Dragon”. Some former Alamo employees were advised to reapply for their positions in the spring.

The termination of jobs isn’t being seen as a directive from Sony, but rather an “Alamo decision.” Alamo has highlighted that the company performed exceptionally well in 2024 compared to other exhibitors and is even expanding amidst an industry downturn. Lately, they’ve announced plans for two new cinema locations in San Francisco.

In July, Sony made history by acquiring Alamo, becoming the first major movie studio to own a theater chain since over 75 years ago. This purchase came after Alamo sought Chapter 11 bankruptcy protection in 2021, during the ongoing COVID-19 pandemic. Following their bankruptcy, Altamont Capital, Fortress Investment Group, and Tim League became its owners. Subsequently, they sold the theater chain to Sony.

Originally established in 1997 by Tim and Karrie League as a small, family-owned movie theater in Austin, Texas, the Alamo Cinema has since blossomed into a popular and vibrant dine-in cinema chain that is adored both by its patrons and the industry. Despite being ranked as North America’s seventh-largest theater chain, Alamo presents an eclectic mix of films, showcasing more movies each year than any other chain. Annually, it caters to over 10 million visitors.

Alamo and Sony had no comment.

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2025-01-14 23:55