Quibi Announces Execs Will Take a 10% Pay Cut

Amid talk of staff layoffs from The Wall Street Journal, Quibi’s founder Jeffrey Katzenberg and CEO Meg Whitman have sent out an internal memo. In the memo, the two reassured staff that Quibi is doing well financially and is actively adding to the team, rather than considering layoffs.

Reports show that Quibi has brought in 1.6 million subscribers, but many of those are watching with the initial 90 day free trial. While the mobile-first streaming service hasn’t met its targets, Katzenberg and Whitman say the company is still in a position to be successful long-term.

With advertisers looking to renegotiate deals with the service and Quibi caught up in legal issues around its turnstyle feature, budget cuts have been in order. In addition to putting layoff rumors to rest, Katzenberg and Whitman announced in the memo that senior leadership will be taking a 10% pay cut to cut down on costs.

Deadline first printed the full memo, shown below:

Good morning–

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

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