Alamo Drafthouse has become the latest media company to endure a round of layoffs.
The popular theater chain downsized companywide on Tuesday.
The move comes seven months after Sony Pictures Entertainment acquired the Alamo. The Austin-based company operates 35 movie theaters in 25 metro areas.
Sources say that the layoffs took place in two areas. On the corporate side, 9% of employees (15 in total) were laid off as part of the restructuring “to ensure more effective work.” On the store side, an unspecified number of employees were laid off ahead of what Alamo expects to be a slow few months at the box office. One insider described most of these layoffs as seasonal, part-time, part of an annual divestiture of employees after a busy holiday season and before a traditionally slow first quarter. But some employees on Reddit claim this time is a bit different, with up to 30 people being laid off at each site.
“Alamo Drafthouse Cinema has laid off a group of employees across the company without any notice or precedent in the name of slowing down the upcoming season and, in some cases, restructuring the company,” one employee wrote on Reddit. “Apparently more than 30 people in my position will lose their jobs.”
While the next few months are expected to see a dearth of high-grossing titles (with the notable exception of Marvel’s entry next month, Captain America: Brave New World), summer is widely expected to see a lot of visits (eg Superman, Mission: Impossible – The Final Reckoning, The Fantastic Four: The First Steps, The birth of Jurassic World And the live version of How to train your dragon). Some laid off Alamo employees say they have been asked to try to reapply for their jobs in the spring.
The layoffs are described as a decision by Alamo, not authorized by Sony. Alamo recently noted that the company has a strong 2024 compared to other exhibitors and is expanding at a time of industry contraction. It recently announced two new cinema locations in San Francisco.
Sony’s purchase of the Alamo in July marked the first time a Hollywood studio has owned a theater chain in more than 75 years. The move came on the heels of Alamo filing for Chapter 11 bankruptcy protection in 2021, when it was still struggling amid the COVID-19 pandemic. Altamont Capital, Fortress Investment Group and Tim League emerged as owners after the bankruptcy, who in turn sold the series to Sony.
Founded in 1997 by Tim and Karrie League as a single-screen theater in Austin, Texas, Alamo has grown into a thriving, dynamic dining cinema chain beloved by its fans and the industry alike. Although ranked as the seventh largest movie theater chain in North America, the Alamo offers a highly diverse roster, with more films per year than any other theater chain. The Alamo welcomes more than 10 million guests annually.
Alamo and Sony had no comment.
