July 29--Relativity Media, the beleaguered movie and television studio run by Ryan Kavanaugh, is cutting a fifth of its staff, the Beverly Hills company confirmed Wednesday.
"As Relativity continues to move forward with steps to strengthen its balance sheet and reduce costs, we've made the difficult decision to eliminate 75 full-time positions across several divisions," a company spokesman said in a statement. "This is a necessary step to position the company for a strong future."
The firm currently employs about 350 people.
Relativity, which has struggled to come up with the money to pay the $320 million it owes lenders, is also expected to declare bankruptcy this week after 11 years in business, according to people with knowledge of the matter who were not authorized to speak publicly.
The company did not say which divisions would be most affected by the layoffs, but they are expected to hit newer operations like its fashion unit.
"We appreciate the dedication and hard work of all of our colleagues, and we are making every effort to assist and transition those who are leaving the company," the statement said.
Relativity and Kavanaugh, 40, have been the subject of wide speculation in Hollywood for weeks.
The company has pushed back the release dates of some of its biggest movies, including "Masterminds" starring Zach Galifianakis and Kristin Wiig, as it dealt with financial problems. It has also been in a legal fight with a lender, RKA Film Financing.
