UPDATE: Machinima Downsizes, Sheds 10 Percent of Workforce

/ Sep 18, 2013

Machinima

Update 09/19/2013: Several former Machinima employees have confirmed the layoffs on Twitter. Among the let go is Machinima Respawn producer and host Scott Fisher (APL). Fisher was featured in the most recent Respawn upload “GTA 5 Heist.”

Fisher

Rogers

H.W

Machinima*, the web video entertainment network for gamers and gaming culture, is laying off between 20-30 employees, according to a source with knowledge of the plans.

In a statement from the company, which you can read in full below, Machinima says it is making an “increased commitment to premium programming, its YouTube affiliate network, and multi-platform distribution.” As a result, the company has decided to cut roughly 10% of its workforce (22 of 206 employees) so it can move that money into these growth areas.

It’s very similar to what Machinima said when it let go of 20 staffers last December. At the time, Machinima said: “Today Machinima underwent a reorganization to address its global growth, and this process unfortunately resulted in layoffs. Less than 10% of Machinima’s workforce was affected.”

Here is the full statement from today:

“In connection with Machinima’s growth plan, the company is making an increased commitment to premium programming, its YouTube affiliate network, and multi-platform distribution. As a result of an increased need for investment in these areas, Machinima is eliminating positions representing approximately 10% of the company’s workforce equating to 22 of 206 employees. Over the next several months, Machinima will announce new programming and distribution initiatives that will advance the next phase of this strategic plan.”

Speculation was rife during the summer that Machinima wants to raise a mega-round of funding (in the range of $70-80 million) as it looks to launch a premium OTT platform. The company has reportedly been in discussions with Hollywood studios like Warner Bros. and Paramount to either invest in Machinima or partner with the company on premium, TV-quality programming.

The end-goal is to simply create a premium, Netflix or HBO Go-like OTT platform, which would offer an array of TV-length shows that Machinima can license for its gaming- and action-loving audience (so really, not all that simple). That’s why the company wants to raise such a massive round of financing.

While it’s unclear how that process is going, these layoffs suggest that Machinima isn’t raising as much as it wants to.

Another way to look at it, if you’re in a speculative mood, is that Machinima has a partnership in the works with another media company and these layoffs are to eliminate redundancies within the workforce. Though Machinima has never confirmed it publicly, rumor has it that the company at one time considered a sale.

* Machinima CEO Allen DeBevoise is an investor in VideoInk.

Tags: , , ,


dirty-30-hannah-hart-mamrie-hart-grace-helbig

VIDEO: ‘Dirty 30’ Confessions with Stars Hart,...

 
facebook-thumbs-down

Facebook Says It’s Sorry It Vastly Overestimated Video...

 
craig-piligian-pilgrim-media-group

Pilgrim Media Group CEO Craig Piligian (‘The...

 
youtube-heroes-for-change

Heroes or Rats?: YouTube Unveils New Program for Creators Who...

 
Industry Tickets Selling Fast!
Click above to lock in your registration for VidCon 2015!
 
Vessel says it's doing well in its first month

Why Verizon is Pursuing Vessel, the...

 
jared-feldman-and-sam-hui-ph-d-at-the-2014-canvs-launch

How Canvs Media is Harvesting Emotional Insights on YouTube,...

 
marlon-wayans

Marlon Wayans Getting ‘Naked’ for Netflix with Regina Hall

 
huffpost-ryot-aol

HuffPost RYOT Launching Virtual Reality Comedy Series and News...

 
youtube-vote-irl

YouTube Launches #voteIRL Campaign Targeting Digital-First Generation

 
tyler-oakley-camp17

How Top YouTubers (incl. Tyler Oakley & Meghan Rienks)...

 
charlie-sheen-anger-management

Charlie Sheen to Star in Crackle Feature ‘Mad Families’

 
filmbuff_videoink_300x250

Gunpowder & Sky Buys Distributor FilmBuff As Vision for...

 
toy-freaks-youtube

Toy Freaks Top Viewed YouTube Channel in August According to...

 
jeffrey-tambor-transparent-amazon

Emmy Wrap-Up 2016: Jeffrey Tambor (‘Transparent’)...

 
Twitter

Twitter Scores 2.1 Million Viewers for Thursday Night Footall Kickoff

 
youtube-sad-face-error

Vloggers Not Unique Snowflakes: 90 Million Flag YouTube Videos...

 
Mode Media

‘Billion Dollar Startup’ Mode Media Shuts Down

 
raised-firsts-branded-tv

Who Is Winning The Marketing Revolution And Why?

 
shes-gotta-have-it

Netflix Orders ‘She’s Gotta Have It’ Series...

 
swedish-dicks-peter-stormare-keanue-reeves-viaplay

What Is ‘Swedish Dicks’ and Who Is Selling It?

 
seamlessly-she-monica-potter-aol-partner-studio-gmc-acadia

How GMC is Using the AOL Series ‘Seamlessly She’...

 
Netflix_new

Liberty Global to Put Netflix on Set-Top Boxes in 30 Countries

 
vincent-cacace-vertebrae

Getting to the Spine of VR’s Monetization Challenges with...

 
meredith_brandfront_videoink_300x250

Meredith Hosted Its Own “Front” Stacked with 20 New Series

 
complex-networks-hearst-verizon

Verizon and Hearst Move RatedRed.com and Seriously.TV Under...

 
Twitter

Twitter Launches Live Streaming Apps for Amazon Fire, Apple TV...

 
YouTube Community

YouTube Fights Back Against Social Media Rivals with Community Feature

 
Casual Hulu

Vimeo Opening Television Store with Lionsgate Content, Launching...

 
A Perfect Day in LA Tastemade Jaunt VR Virtual Reality

From Donuts to Malibu, Tastemade and Jaunt Get Immersive in...

 
Defy Media

Defy Media Close $70 Million Series B Funding Round

 
YouTube Space LA Halloween Set 2016

YouTube Spaces Team with Jason Blum (‘The Purge’)...

 
Yahoo Esports

‘Yahoo Esports Live’ Serves Up Reeses Puffs with...

 
univision

Univision and Lionsgate Team for SVOD Movie Service for U.S. Hispanics

 
People Entertainment Weekly PEN

People/Entertainment Weekly Ad-Supported OTT Service Preps for Launch

 
George_Kliavkoff Jaunt VR

Jaunt VR Hires Hearst Exec George Kliavkoff as CEO

 
Making a Murderer Netflix

‘Making a Murderer’ Scores for Netflix at Creative...

 
Future Man Hulu Josh Hutcherson

Hulu Orders ‘Future Man’ Series Starring Josh...

 
Heirloom Paten Hughes Tom Wopat Vimeo

How an Actress’ Real-Life Tomato Farm Inspired the New...

 
Robert Redford and Jane Fonda Electric Horseman

Netflix Rolls Camera on Robert Redford & Jane Fonda...

 
AmazonBox

Amazon Greenlights Docu-Series on Tennis Star Novak Djokovic