SpringHill, the production company backed by LeBron James, is laying off about 5% of its workforce as part of a wider reorganization, according to multiple people familiar with the process.
The company is eliminating roughly 10 jobs as part of the restructuring, which will ultimately result in a larger staff, said one of the people, who was granted anonymity because the details are private. The roles being cut are junior and mid-level, a source said, and mostly involved administrative staff. CEO Maverick Carter told employees the news Monday afternoon in a company meeting.
SpringHill was valued at $725 million in 2021 when Nike and RedBird Capital invested. As part of the reorganization, the company is looking to add roughly two dozen new people in sales and creative jobs to grow the firm’s brand consultancy.
“SpringHill regularly eliminates and adds roles depending on growth and our priorities. This morning we announced a reorganization which includes the elimination of 10 roles and the active hiring of 24 new employees. We will continue to do this regularly to reflect our leadership’s direction and how they want to drive growth to top and bottom line,” the company said in a statement to Sportico.
SpringHill is the combination of three business launched by James and Carter, his longtime business partner. They are SpringHill Entertainment, Uninterrupted, and the Robot Co. marketing consultancy. The company’s work includes the HBO series The Shop, Netflix’s Hustle starring Adam Sandler, and the 2021 Space Jam movie, which also starred James.
The company raised $100 million in 2020 from a group that included Guggenheim Partners, the University of California’s UC Investments and Jason Stein’s SC.Holdings. The following year, it raised more money from a group that included RedBird Capital, Nike (NYSE: NKE), Fenway Sports Group and Epic Games.
SpringHill said at the time that it wanted to use the new capital to expand the development of IP, content, and live events. It also said it would look to pursue new acquisitions, and “bring unique content to the metaverse.” Since then, SpringHill’s business has expanded. It recently partnered with tennis star Naomi Osaka to launch a new production company called Hana Kuma.
As big networks and streaming platforms pay increasing prices for new content, celebrity-driven production companies have become a hotspot for investment. Aside from SpringHill, others include Reeese Witherspoon’s Hello Sunshine and Will Smith and Jada Pinkett-Smith’s Overbrook Entertainment.
SpringHill is just the latest company in tech and media to go through a round of layoffs. They include some of the industry’s most prominent companies, such as Twitter (NYSE: TWTR), Lyft and Stripe, and ones prominent in sports, such as DraftKings (Nasdaq: DKNG) and Buzzer. Tech giants Apple and Amazon have also instituted hiring freezes last year.