The Weinstein Company lays off 20 employees ahead of bankruptcy sale to Lantern Entertainment

Press Trust of India

Jul,12 2018 14:11:22 IST

Ahead of its USD 289 million bankruptcy sale to Lantern Capital, The Weinstein Company (TWC) is sacking more than 20 of its employees.

FILE - In this May 25, 2018 file photo, Harvey Weinstein, center, listens during a court proceeding in New York during his arraignment on rape and other charges. On Friday, June 1, 2018, a new rape allegation was made against Weinstein as part of a lawsuit alleging he had help covering up his misconduct with women. Melissa Thompson says that when she was meeting with Weinstein in 2011 to pitch internet technology, he cornered her and "out-muscled" her as she tried to fight him off. (Steven Hirsch/New York Post via AP, Pool)

Harvey Weinstein. Image from AP/Steven Hirsch

A source told Variety, the PR, marketing, and distribution departments of the TWC are seeing the cuts.

The company had been losing employees since the Harvey Weinstein sexual harassment scandal broke last October - the number has reduced to less than 70 this week from 140 staffers. The layoffs represent nearly a third of the remaining workforce.

Technically, the entire Weinstein Co staff is being terminated.

About two-thirds of the staff are being offered jobs with the new company, Lantern Entertainment. The employees who are leaving will be paid through Friday, with no severance beyond that.

During a town hall meeting at the Weinstein Co offices on last month, Lantern Entertainment co-presidents Andy Mitchell and Milos Brajovic hinted that jobs would be cut.

Mitchell and Brajovic indicated that employees might have to reapply for their jobs. Employees were particularly concerned that Lantern would curtail the distribution business. The duo did not offer anything definitive at that point, saying the business plan was still a work in progress.

The layoffs come hours after a Delaware bankruptcy judge gave final approval to the sale.

Updated Date: Jul 12, 2018 14:11 PM