Allen Media Group has announced that layoffs will soon impact its employees. The company is owned by Byron Allen, comedian, prominent Black film producer, and media mogul.
Allen Media Group’s vast portfolio comprises linear television and streamers, such as The Weather Channel, The Grio, and HBCU Go. A spokesperson for the company shared that it will undergo a restructuring that includes a round of layoffs to optimize growth.
“Allen Media
Group is making strategic changes to better position the company for growth that will result in expense and workforce reductions across all divisions of the company,” explained the rep to the Hollywood Reporter.They continued, “Allen Media Group’s brands continue to perform well and in many areas, our revenue growth has greatly outpaced the market. We are aligning these changes to drive future business opportunities and support growth strategies in our rapidly evolving industry.”
Allen’s estimated net worth ranges around $735 million. He once aspired to buy CNN and other initiatives to purchase BET and Disney’s linear assets. His most notable purchase, The Weather Channel, went for a reported price tag of $300 million in 2018.
He first launched the media firm in 1993. It has since expanded its enterprise to film distribution, releasing movies such as 47 Meters Down. Allen also attempted to revive Black News Channel upon his $11 million acquisition of the property in 2021. However, the 63-year-old shut down its operations the following year.
The New York Post report
ed that the layoffs will impact 12% of the firm’s workforce, specifically 300 of its 2,500 employees. It is its first-ever round of layoffs since the company’s establishment. It expects to reduce costs by $100 million as the company’s profits shrunk by 19% in its fourth quarter as compared to last year.Allen hopes to turn around profits for the company as he continues to pave a lane for Black-owned media.
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