Alamo Drawing Room Suffers Layoffs Amid Box Office Downturn

Alamo Drafthouse has experienced layoffs, with 15 employees (9% of the total workforce) being laid off at the corporate level.

The popular movie theater chain had 165 employees before the layoffs. The Alamo Drawing Room declined to comment. However, the positions were eliminated as part of a restructuring of the business to prioritize efficiency, the source said, adding that no further layoffs were expected on the company's part.

Like all theater chains, the Alamo Drawing Room has spent the past four years grappling with the residual effects of the coronavirus pandemic, only to face further setbacks from two labor strikes in 2023. Domestic box office revenue in 2024 dropped to US$8.75 billion, down 3.3% from last year and 23.5% from 2019. This is the first time since the epidemic that annual revenue has not improved. Hollywood hopes the box office will eventually rebound to pre-COVID levels in 2025. After a slow start, movie attendance is expected to pick up with the release of Marvel's "Captain America: Brave New World" on February 14, followed by "Superman" and "Superman" that are expected to become blockbusters movie. "Jurassic World Reborn," "Mission: Impossible: Reckoning," "Fantastic Four: First Steps" and "Wicked: Forever" over the next 12 months.

Alamo Drawing Rooms has also laid off an unspecified number of venue workers across its theater chain, though sources said the layoffs are part of the annual post-holiday economic slowdown. Most of these people are part-time employees who were hired during the busy Christmas period and will be eligible to be rehired in the spring when box office growth resumes.

Alamo Drafthouse opened two new venues in San Francisco last December and now has 44 venues across the country. The chain was acquired by Sony Pictures Entertainment last year. Insiders stressed that these layoffs were a decision made by Alamo leadership and not mandated by Sony.

Alamo's corporate ownership filed for Chapter 11 bankruptcy in 2021 as the theater chain struggled to recover from prolonged coronavirus-related shutdowns and a lack of new movie releases. Months later, the company completed its sale to Altamont Capital Partners, whose funds are managed by Fortress Investment Group LLC and affiliates of Alamo Drafthouse founder Tim League. A favorite among moviegoers, the theater is known for its in-theater dining options, themed events related to new and classic films, and its strict "no talking, no texting" policy.