Quibi has reassured its employees that layoff rumors are untrue.
Setting the record straight, founder Jeffrey Katzenberg and CEO Meg Whitman sent a staff memo noting executives would take a 10 percent cut “because it’s the right thing to do.”
A PR staffer representing Quibi provided a copy of the entire memo to The Streamable:
Many of you have already seen the NY Post’s Page Six story. The story was completely inaccurate. We are pleased with the performance of “Fierce Queens”; additionally, the talent compensation was utterly inaccurate. We are grateful for Reese’s continued support of Quibi.
We are proud of the work that Jim Toth and the Content team are doing every day. Their integrity and commitment to their work is unparalleled and we are fortunate to have them on our team. They have delivered compelling content that is working great with our audiences.
Nothing has changed since our last company meeting two weeks ago. Quibi is in a good financial position. As we said in that meeting, we will look for ways to tighten our belt. We are not laying off staff as a part of cost saving measures. We’ve recently added a dozen new Quibi employees.
And in regard to tightening our belt, our senior leadership team has volunteered to take a 10% pay cut because it’s the right thing to do.
We are excited about the future. As we shared in our most recent company meeting, the best is yet to come. We are confident in Quibi and the work that you are creating every day.
As the last several days have shown us, there are so many important challenges facing all of us, and we are thankful that we are all able to work together to support each other, and create a platform that can celebrate the diverse voices of our community.
Meg and Jeffrey
The duo said there had been no changes since the last company meeting two weeks ago.
The memo added: “Quibi is in a good financial position. As we said in that meeting, we will look for ways to tighten our belt. We are not laying off staff as a part of cost-saving measures. We’ve recently added a dozen new Quibi employees.”
The memo was in response to reporting by the New York Post's Page Six, which cited a source who said Quibi “may have to implement cutbacks.” The Wall Street Journal also reported that Quibi was considering layoffs.
The executives also disagreed with the Post’s report that Reese Witherspoon made $6 million to narrate the animal documentary “Fierce Queens.” They said “the talent compensation was utterly inaccurate.”
The company claims about 4.5 million app downloads and 1.6 million subscribers for the mobile streamer, but a large number of those subscribers are part of the 90-day free trial. The audience Katzenberg anticipated at the April launch hasn’t materialized.
Quibi charges $4.99/month or $7.99/month for an ad-free version.