Fox, Offering Buyouts, Targets $250 Million in Cost Cuts

21st Century Fox is offering buyouts at its film studio and television networks group in an attempt to cut $250 million in expenses in the next fiscal year, according to a person familiar with the matter.

The voluntary buyout plans were announced to staff in memos sent out Monday.

"Our industry is changing rapidly, presenting new challenges and even more opportunities at every turn," wrote Peter Rice, the chief executive of Fox Networks Group, in a memo to staff. "To ensure we make the most of this new world, we need to adjust, adapt, and organize for the future. With this in mind, through the remainder of this fiscal year, we will be undertaking some structural changes, increasing investment in some parts of the company while making cost reductions in other areas."

Jim Gianopulos, CEO of the Twentieth Century Fox film studio, sent a similar memo to his staff, saying that the studio was "reviewing our organizational structure and looking at potential cost reductions to position us for sustained growth." He added that "colleagues who have extended tenure" will be offered "an enhanced benefit package if they elect to voluntarily resign form the company effective at the end of May 2016."

21st Century Fox and Wall Street Journal owner News Corp were part of the same company until mid-2013.

Write to Joe Flint at [e-mail] and Keach Hagey at [e-mail]

(END) Dow Jones Newswires

February 01, 2016 15:35 ET (20:35 GMT)

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