Further Cost-Cutting at Image

CHATSWORTH: Image Entertainment is continuing its cost-cutting efforts, with an additional downsizing of its workforce by 30 percent, among other measures.

The company has announced "aggressive renegotiations" of vendor contracts and trade-payable obligations, as well as a substantial reduction in the monthly cost of its headquarters’ lease. Announcing the moves, Ted Green, Image Entertainment’s chairman and CEO, noted: “When we took over the management responsibility for the company, we knew we needed to restructure the company’s overhead. These restructuring plans have been carefully developed and put into effect over the past two months. We are now more streamlined, cost aligned and positioned for future growth. While these changes are difficult overall, they are needed for the long-term viability of the company.”

According to John Avagliano, COO and CFO of the company, the renegotiations with major creditors are expected to yield one-time savings of more than $6 million, while a reduced workforce will save more than $4 million annually.