IMG will see a 3% reduction in its workforce in the coming weeks, according to an internal memo sent to IMG employees earlier today from William Morris Endeavor co-CEOs ARI EMANUEL and PATRICK WHITESELL. WME acquired IMG for $2.4B and the reduction in IMG workforce has been in the plans as a way to eliminate redundancies as the two companies merge. IMG employs close to 3,000 people worldwide. Emanuel and Whitesell wrote, “These changes will allow us to more effectively invest in our future through acquisitions; to re-allocate our resources to high-growth businesses; and ensure we realize our full potential across WME | IMG.” Most of the WME/IMG restructuring to this point has been focused in Europe, where one office has closed and a handful of execs have left, but these upcoming layoffs are expected to be distributed evenly across each of IMG’s divisions, a source said today. The downsizing is part of WME’s plan to reduce costs by a total of $151M. The merger is almost in its eighth month since the deal officially closed May 6. Based on WME’s original plans, which were detailed in financial reports to lenders earlier this year, organizational realignment and consolidation in months 6-9 are expected to account for $55M in savings. The company expects to take 18 months to cut the full $151M.
