Sesame Workshop is planning major layoffs, CEO Sherrie Rollins Westin said in a memo to staff this week.
The non-profit behind the iconic children’s TV show Sesame Street informed staff of its plan to “downsize significantly” and change its benefits and bonus program, shortly after more than 200 employees announced plans on Tuesday to unionize.
The move also comes months after Warner Bros. Discovery, which owns the streaming service Max where Sesame Street has been available since 2020, announced it would not renew a distribution deal for new episodes of the show, which is in its 55th season.
In the email, which circulated online Wednesday, Rollins Westin blames “economic challenges inherent to the drastically changing media landscape,” as well as the end of the distribution deal and “policy changes affecting our federal funding.”
A Sesame Workshop spokesperson confirmed the content of the email to CBC News.
“These changes are necessary to ensure that the Workshop is poised to continue to deliver on its mission for years to come, but that does not make the human impact of these reductions any less painful,” the spokesperson said in an email to CBC News.
Sesame Workshop employees, including early childhood education experts, fundraisers, facilities staff, producers and paralegals, announced Tuesday they had “overwhelmingly demonstrated support” to unionize with Office and Professional Employees International Union (OPEIU).
The union said the employees wanted to ensure they “can participate in decisions that impact them, including those related to job security and fair pay.”
Classic characters Big Bird, Elmo and Cookie Monster are looking for a new home after HBO Max ended its partnership to air new Sesame Street episodes, forcing Sesame Workshop to look for a new distribution partner.
“Sesame Street has taught generations the importance of kindness, fairness and standing up for what’s right,” Phoebe Gilpin, senior director of formal learning with Sesame Workshop, said in a statement Tuesday.
“As the dedicated staff behind this beloved show and so much more, we believe Sesame Workshop should embody those same values by ensuring all workers have a voice in the decisions that affect us. By coming together, we believe we can build a stronger, more supportive workplace that embodies the crucial lessons we teach the world’s children every day.”
Sesame Street writers and cast and crew, including puppeteers, have long been unionized, according to OPEIU, but this was the first time administrative workers had sought union representation.
