Megan Ellison’s Annapurna Lays Off 30 Staffers as Company Adjusts to Changing Market

Megan Ellison’s Annapurna is cutting loose roughly 30 employees this week, marking the latest sign of turbulence at the independent entertainment company as it navigates shifting industry conditions.

The layoffs, which slice away more than 15 percent of the company’s headcount, were confirmed Wednesday. A spokesperson for Annapurna said the cuts reflect current business realities and that the company is realigning to keep pace with an evolving entertainment landscape. The company said it’s providing support to departing employees during the transition.

Since its founding in 2011, Annapurna has earned its stripes backing bold, director-centric projects. The company’s track record speaks for itself Zero Dark Thirty, The Master, Her, Foxcatcher, Booksmart and Hustlers all bear the Annapurna name.

The timing of these cuts is striking. Just a few months back, in March, Annapurna signaled it was doubling down on film by rehiring veterans Chelsea Barnard and Matthew Budman as co-heads of the division. That move suggested the company was ready to amp up its movie ambitions.

But the company’s recent film output tells a different story. Looking ahead to 2026, Annapurna has just a handful of projects in the pipeline Olivia Wilde’s The Invite (being handled by A24) and Boots Riley’s I Love Boosters (through NEON). The company has been spreading its wings beyond traditional filmmaking, diving into television, theater and video games.

Annapurna’s gaming arm had been a bright spot, publishing hit independent titles like Stray, Outer Wilds and What Remains of Edith Finch. That ended abruptly in 2024 when the entire Annapurna Interactive team resigned over a failed deal regarding a proposed spinoff. The company remains active in gaming development though, with Control Resonance a sequel to the acclaimed game Control set for September.

The layoffs underscore the balancing act Ellison faces as she tries to keep Annapurna’s reputation for ambitious creative work intact while wrestling with the harsh financial realities of today’s entertainment world. Going forward, it looks like smaller may be the new strategy.