Alamo Drafthouse Lays Off 70 NYC Employees Ahead of Expected Strike

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the Theatical Alamo:

Seasonal Slowdown or Strategic Cuts?

Alamo Drafthouse, the popular dine-in cinema chain known for its strict "no talking, no texting" policy, has laid off approximately 70 employees from its Manhattan and Brooklyn locations. These layoffs come as workers at two of its New York City venues prepare for an expected strike, escalating ongoing labor tensions between the company and its recently unionized staff.

While Alamo Drafthouse has not provided an official statement regarding the layoffs, sources indicate that these cuts are part of the industry's usual seasonal workforce reduction. The early months of the year often see lower attendance following the holiday season, leading many theater chains to downsize temporarily. However, the timing of these layoffs, coinciding with a looming strike, has led to accusations that they are a strategic move to weaken labor efforts.

These layoffs primarily affected part-time employees, who may be eligible for rehire in the spring when moviegoing attendance is expected to rebound. Alamo Drafthouse similarly reduced staff at other locations across the country in January, as well as cutting 15 corporate positions—approximately 9% of its workforce.

Labor Dispute and Union Complaints

The layoffs have heightened tensions between Alamo Drafthouse management and the United Auto Workers (UAW) Local 2179, which represents staff at the company’s Lower Manhattan and Downtown Brooklyn locations. The union, which formed in 2023, has been negotiating with management over key issues such as wages, scheduling, and workplace safety.

On Monday, the union filed an unfair labor practice charge with the National Labor Relations Board (NLRB), alleging that Alamo Drafthouse “failed or refused to bargain in good faith” before implementing these operational changes. The union argues that by enacting layoffs ahead of negotiations, the company is undermining collective bargaining efforts.

Alamo Drafthouse’s Changing Business Landscape

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The layoffs come amid broader changes for Alamo Drafthouse, which was acquired by Sony Pictures Entertainment in 2023. The theater chain had previously filed for Chapter 11 bankruptcy in 2021 due to financial struggles exacerbated by the COVID-19 pandemic and prolonged theater closures. Although the company emerged from bankruptcy, it continues to face economic challenges, including the lasting impact of Hollywood’s 2023 labor strikes and a sluggish box office recovery.

Domestic box office revenues in 2024 reached $8.75 billion, marking a 3.3% decline from the previous year. This downturn represented the first post-pandemic annual decrease in box office earnings, heightening concerns about the industry's long-term financial health.

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The Future of Alamo Drafthouse and Moviegoing Trends

Alamo Drafthouse’s financial difficulties reflect broader industry struggles, as theater chains navigate shifting consumer habits favoring streaming platforms and at-home viewing experiences. Despite these challenges, Hollywood is optimistic about a box office resurgence in 2025, with high-profile releases such as Captain America: Brave New World, Superman, Jurassic World Rebirth, Mission Impossible – The Final Reckoning, Fantastic Four: First Steps, and Wicked: For Goodexpected to drive attendance.

For Alamo Drafthouse, the coming months will be crucial. If labor disputes persist, the company could face disruptions at key locations, potentially affecting both revenue and reputation. As negotiations between management and union representatives continue, the outcome will likely have lasting implications for Alamo’s workforce and the broader labor movement in the film exhibition industry.

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