From: Michael Lynton and Amy Pascal
Subject: A Message to the Sony Pictures CommunityDear Colleagues,

Last October, at our all-hands meeting, we said that the state of the studio was strong. We also said that we would be reducing overtime, travel, executive benefits and taking other steps to minimize the pain for employees during the economic downturn.Today, our studio remains profitable, but over the past five months, the deepening global financial crisis has begun to impact some of our lines of business, such as television syndication, DVDs and advertising sales. These economic effects have, regretfully, made it necessary to take the step we had hoped to avoid, and worked hard to minimize: reducing our headcount to ensure the stability and success of our business going forward.

So we are undertaking a workforce reduction that will involve about 3½% of our co-workers worldwide. People whose positions are being impacted are being notified, and supervisors will be providing more information about this announcement to employees.

These are very tough times for many people, but especially those affected by this reduction, and for their families. To everyone who will be leaving us, we offer our thanks for all their service and contributions to the Sony Pictures community, and we want to be as helpful as possible during this very challenging period of transition.

Finally, we’d like to say something else we spoke about last October, and which is even more relevant today. We want to create a culture here at Sony Pictures that will sustain this business in good times and bad. And it is in that spirit that we hope to emerge from this time of trial stronger and more resilient than ever.

Michael and Amy