4Kids Announces Layoffs

NEW YORK, December 18: In
the wake of the economic downturn, 4Kids Entertainment will be cutting 15
percent of its workforce as part of a cost-cutting initiative.

The layoffs, across all of
the company's divisions, will incur severance costs of about $375,000 in the
fourth quarter. In addition to the workforce reduction, 4Kids is looking to cut
operating expenses by a further $4 million to $5 million next year. These
moves, together with the early termination of the 4Kids TV block on FOX, is
expected to generate pretax savings of $15 million to $18 million this year.

"We have taken some
critical steps to respond to the litany of challenges presented by the
worldwide economic crisis," said Alfred
R. Kahn, the chairman and CEO of 4Kids Entertainment. "The
streamlining of our organization and further reduction in operating expenses
will better position the company to ride out the current economic storm."

—By Mansha Daswani