Outdoor Channel Holdings announced staff cuts to reduce overhead at its Production Services business unit. The company, which operates the Outdoor Channel, said the moves are aimed at better aligning the Production Services segment with current business conditions and improving profitability going forward.
The workforce reduction announced represents approximately 30% of the company’s Production Services employee base. Outdoor Channel Holdings said it is also taking steps to more effectively focus the unit’s content development efforts on the outdoor programming category. The company estimates that the efforts will result in a restructuring charge of approximately $300,000 during the second quarter. The reduction plan is not expected to have a material impact on the Skycam and CableCam aerial camera business, it added.
“These initiatives reflect our efforts to further streamline and refocus our Production Services segment, with the goal of driving efficiencies and improving profitability,” said COO Tom Hornish. “By rightsizing the unit and better aligning its production activities with our content needs, we believe we can generate improved results with less overhead. We expect the results of this program to become evident beginning in the second half of 2010,” he added.
