IDW Makes Major Cuts to Workforce
IDW Media Holdings, the parent company of IDW Entertainment and IDW Publishing, is cutting about 39% of its workforce, along with other changes "in response to operational challenges to position the company for recovery and future growth." According to a statement from IDW Media, the hope with these moves is to "preserve capital, and put the Company in the strongest position possible to unlock value from its assets, including its intellectual property and ability to generate new intellectual property."
"The reduction in force and other steps, after the effect of backfilling certain positions, is expected to deliver approximately $4.4 million in annual savings (and potentially greater savings in future periods) and is currently expected to result in approximately $0.9 million in severance and related costs to be recognized in the current period."
IDW Media has also chosen to voluntarily delist from the New York Stock Exchange, along with deregistering its Class B common stock. "The Board determined that deregistration is in the overall best interests of the Company and its stockholders following review and careful consideration of a number of factors, including, but not limited to, the expected reduction in operating expenses associated with continued listing and reporting, which would allow the Company to focus more resources on its recovery and growth plans," the statement reads.
Some of the higher-ups leaving the company include Brooke Feinstein, IDW's former Chief Financial Officer, and Allan Grafman, the former Chief Executive Officer. Grafman was recently named CEO back in August. He'll be replaced by Davidi Jonas, who also holds the title of Executive Chairman and Vice Chairman of the Board.
"We appreciate Allan's industry experience and efforts on IDW's behalf during the last eight months as CEO and for over three years prior to that as a member of the Board and Chairman of the Audit Committee," said Howard Jonas, IDW's Chairman. "However, with the need to make pivotal changes to preserve value and transform the Company, the Board felt that a new CEO with new ideas, a tireless work ethic, willingness to roll up his sleeves and do whatever is needed to help the Company, with a successful record at creating a corporate culture of excellence and maximizing stockholder value, was what IDW needed."
"I am humbled by the confidence being placed in me by the IDW Board in appointing me to this position at such a pivotal time in the Company's existence," said Davidi Jonas. "I feel an overwhelming sense of excitement and more than a little trepidation as I face the challenges before us. Our Board is taking bold action to address the challenges facing the Company and I share their view that alacrity is called for. My trepidation comes from the magnitude of the task ahead and my determination to do everything possible to unlock and create the value for our stockholders that they deserve. Many of our stockholders, not least of them members of my family, have shown patience and loyalty and it is my singular goal to see that rewarded."
