Miramax Considers Round Of Layoffs To Cut Costs
LOS ANGELES (NY Times) -- Faced with a budget crunch, Miramax Films confirmed it is considering laying off a portion of its 450 employees as the Walt Disney Co-owned independent film company looks for ways to cut its costs.
The makers of 2002's Oscar-winning 'Chicago' and the recent release 'Kill Bill: Vol. 2', are allocated about $700 million by Disney each fiscal year ending in September.
While some reports speculate that as much as 20 per cent of Miramax's staff might be cut, a studio spokesman said Friday that any numbers are speculative. Miramax is largely based in New York but has an operation in Los Angeles, with about 100 employees and other smaller offices around the globe.
"We're considering our options," said Matthew Hiltzik of Miramax. "At this point (the percentage) is just speculation since no decisions have been made."
The studio must now determine how it will spend what remains of its 2004 fiscal year budget. Miramax last experienced cutbacks three years ago when about 15 per cent of its 430 employees were let go.
Despite the Disney-imposed spending cap, the founders, Bob and Harvey Weinstein, have had large production and marketing budgets over the past year, particularly for "Cold Mountain," the Civil War epic starring Nicole Kidman, Jude Law and Renee Zellweger.
Miramax, which has Best Picture Oscars for 'Chicago,' 'Shakespeare in Love' and 'The English Patient,' mounted an expensive awards campaign for 'Cold Mountain' this year but the film was snubbed, ending an 11-year streak of at least one Miramax release being in the Best Picture race. The film earned seven other nominations and Zellweger won the award for Best Supporting Actress.
This year, Miramax plans to throw its resources behind a campaign for the Martin Scorsese-directed film 'The Aviator,' which stars Leonardo DiCaprio as Howard Hughes.
The current cutbacks come at a particularly tenuous time for Miramax and the Weinsteins. The brothers have been at odds with Disney CEO Michael D Eisner over an extension of their current contract, which expires in September 2005.
"Eisner is the one who has basically said that they have a budget and have to hold to it," said media analyst Dennis B McAlpine.
"This is really part of the game of the Weinsteins against Disney and where and how they are going to end up."
Among the issues that have complicated negotiations are the budget, compensation and autonomy. Eisner has stated that Miramax will remain a Disney company whether or not the Weinsteins are running it.
Relations were further strained this spring when Disney refused to allow Miramax to release Michael Moore's controversial movie "Fahrenheit 9/11," saying the movie was too politically charged to be released in an election year. The film is critical of President George W Bush?s handling of the Sept. 11, 2001, terrorist attacks and their aftermath.
The Weinsteins then acquired all rights to the movie, which will be released in US theaters June 25 by independent distributors Lions Gate Films and IFC Films.
Miramax had its biggest worldwide box-office year ever in fiscal 2003, with over $1 billion in box-office grosses and about $200 million in profits, although exactly how profitable the studio is has been a bone of contention between Miramax and Disney.
"?They can't even agree whether Miramax made or lost money in the last five years,' McAlpine said.
Meanwhile, Disney has suffered through a miserable year at the box office following its own record year in 2003. The studio has endured the expensive flop "The Alamo" and seen such high-profile releases as "Hidalgo," "The Ladykillers," and "Home on the Range" failing to come even close to earning back their production and marketing budgets.
LOS ANGELES (NY Times) -- Faced with a budget crunch, Miramax Films confirmed it is considering laying off a portion of its 450 employees as the Walt Disney Co-owned independent film company looks for ways to cut its costs.
The makers of 2002's Oscar-winning 'Chicago' and the recent release 'Kill Bill: Vol. 2', are allocated about $700 million by Disney each fiscal year ending in September.
While some reports speculate that as much as 20 per cent of Miramax's staff might be cut, a studio spokesman said Friday that any numbers are speculative. Miramax is largely based in New York but has an operation in Los Angeles, with about 100 employees and other smaller offices around the globe.
"We're considering our options," said Matthew Hiltzik of Miramax. "At this point (the percentage) is just speculation since no decisions have been made."
The studio must now determine how it will spend what remains of its 2004 fiscal year budget. Miramax last experienced cutbacks three years ago when about 15 per cent of its 430 employees were let go.
Despite the Disney-imposed spending cap, the founders, Bob and Harvey Weinstein, have had large production and marketing budgets over the past year, particularly for "Cold Mountain," the Civil War epic starring Nicole Kidman, Jude Law and Renee Zellweger.
Miramax, which has Best Picture Oscars for 'Chicago,' 'Shakespeare in Love' and 'The English Patient,' mounted an expensive awards campaign for 'Cold Mountain' this year but the film was snubbed, ending an 11-year streak of at least one Miramax release being in the Best Picture race. The film earned seven other nominations and Zellweger won the award for Best Supporting Actress.
This year, Miramax plans to throw its resources behind a campaign for the Martin Scorsese-directed film 'The Aviator,' which stars Leonardo DiCaprio as Howard Hughes.
The current cutbacks come at a particularly tenuous time for Miramax and the Weinsteins. The brothers have been at odds with Disney CEO Michael D Eisner over an extension of their current contract, which expires in September 2005.
"Eisner is the one who has basically said that they have a budget and have to hold to it," said media analyst Dennis B McAlpine.
"This is really part of the game of the Weinsteins against Disney and where and how they are going to end up."
Among the issues that have complicated negotiations are the budget, compensation and autonomy. Eisner has stated that Miramax will remain a Disney company whether or not the Weinsteins are running it.
Relations were further strained this spring when Disney refused to allow Miramax to release Michael Moore's controversial movie "Fahrenheit 9/11," saying the movie was too politically charged to be released in an election year. The film is critical of President George W Bush?s handling of the Sept. 11, 2001, terrorist attacks and their aftermath.
The Weinsteins then acquired all rights to the movie, which will be released in US theaters June 25 by independent distributors Lions Gate Films and IFC Films.
Miramax had its biggest worldwide box-office year ever in fiscal 2003, with over $1 billion in box-office grosses and about $200 million in profits, although exactly how profitable the studio is has been a bone of contention between Miramax and Disney.
"?They can't even agree whether Miramax made or lost money in the last five years,' McAlpine said.
Meanwhile, Disney has suffered through a miserable year at the box office following its own record year in 2003. The studio has endured the expensive flop "The Alamo" and seen such high-profile releases as "Hidalgo," "The Ladykillers," and "Home on the Range" failing to come even close to earning back their production and marketing budgets.