Fears Increase Among CJ E&M Employees As Corporate Restructuring Becomes Imminent
CJ E&M denied the speculation, stating, “There will not be any restructuring imposed upon employees for the purpose of downsizing the number of personnel.” The implication of this statement is that although the company may carry on with reasonable personnel changes following their recent reorganization for more efficient communication, they do not intend to impose such action to meet an established goal. CJ E&M has been suffering from poor corporate performance records over the recent years: the company’s annual profit last year was 137.4 billion KRW, down 54% from the previous year with the net loss of 465 billion KRW. Their acquisition of Fifth Season, an American production studio formerly of Endeavor Content, back in January last year for 930 billion KRW, only added to the company’s financial burden. Despite CJ E&M’s strategy intended to maintain their position as the leading media group with Fifth Season in conjunction with TVing, they have suffered 119.2 billion KRW operating loss as of last year.