Shares of AMC Networks (NASDAQ:AMCX) are down about 5% on Tuesday. The move in AMCX stock comes amid fresh AMC Networks layoffs. Those layoff reports and the emptying positions are affecting all levels of the company.
Starting from the top, CEO Christina Spade is leaving the company after only three months on the job. She only recently took over for Matt Blank in September.
The news comes shortly after Disney (NYSE:DIS) replaced Bob Chapek with former CEO Bob Iger. The C-suite shake-ups continue as streaming and entertainment giants continue to struggle with the current environment. That’s not to say the companies are struggling for subscribers, but they are struggling to control expenses.
In the case of AMC Networks, the company has 11 million paid subscribers. Despite this, the firm is still planning large-scale layoffs. According to some reports, it could include as much as 20% of the company’s staff.
What to Make of AMCX Stock After AMC Networks Layoffs
AMCX stock has not traded all that well, nor has the company been performing all that well. As a result, investors are not exactly cheering today’s news. In fact, it’s creating even more of an issue.
As chairman James Dolan said:
“We of course realize that this will cause significant concern and anxiety for our employees and those who rely on AMC Networks for their livelihood…We do not take this lightly. We will take every step possible to minimize the impact of these actions on our community.”
Well, investors are not taking the news lightly, either.
That’s especially after the company reported a 20% drop in operating income and a 16% decline in revenue last quarter. While earnings did beat expectations, the results were not cheered on Wall Street. That’s as AMCX stock fell 11.8% in a single session after the report.
With shares down 43% so far on the year and 56% from its one-year high, investors continue to sell the stock. That said, AMCX stock was down more than 10% at one point on Tuesday before bouncing and managed to avoid making new lows. While there are a few positives from that perspective, by and large, investors do not like today’s news, and understandably so.
When a CEO abruptly steps down after just a few months on the job, that tends to create shareholder concern.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.