IMG will cut workforce by 3 percent in coming weeks

IMG will see a 3 percent reduction in its workforce in the coming weeks, according to an internal memo sent to IMG employees last week from Ari Emanuel and Patrick Whitesell, co-chairs at WME-IMG.

WME acquired IMG for $2.4 billion, and the reduction in the IMG workforce has been in the plans as a way to eliminate redundancies as the two companies merge. IMG employs nearly 3,000 people worldwide.

Most of the WME-IMG restructuring to this point has been focused in Europe, where one office has closed and a handful of executives have left, but these coming layoffs are expected to be distributed evenly across each of IMG’s divisions, a source said. The downsizing is part of WME’s plan to reduce costs by a total of $151 million.

The merger is in its seventh 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 six through nine are expected to account for $55 million in savings.