Kevin Hart has had to step in to personally manage the day-to-day affairs of his entertainment company after it rotated two CEOs in the past two years while laying off nearly two dozen others, according to a report.
In the months leading up to Thanksgiving, the comedian's production company, Hartbeat, laid off nearly 20 employees, representing about a quarter of its workforce.
Not long afterward, the company's CEO, CFO, and chief content officer left after a disagreement over the company's strategic direction, according to Bloomberg News.
While the executives left on amicable terms, their exit highlights the growing pressures facing independent production companies in an industry grappling with shrinking budgets and production.
Hart has since taken over as CEO, making him the company's third leader in less than two years.
The move underscores the instability within Hartbeat as it navigates a challenging media landscape.
Like many independent production companies, Hartbeat has been hurt by the current austerity measures in Hollywood, as major studios and networks cut back on projects.
Despite these headwinds, Hartbeat remains profitable, making it better than many of its peers in the distressed market.
Hartbeat is not just another small production house. It's part of a select group of celebrity-owned companies that have emerged during the streaming boom, leveraging the star power of their founders to secure massive ratings.
In 2022, Hartbeat raised $100 million from Abry Partners at a valuation of $650 million, following the trend set by Reese Witherspoon's Hello Sunshine and LeBron James' SpringHill.
However, these companies occupy a difficult middle ground: they are too large to support themselves solely through production fees, but too small to have significant ownership of their content.
During the streaming boom, this model flourished with studios and platforms clamoring for content.
But the current downturn has exposed the weaknesses of such companies.
While Hartbeat's profitability sets it apart, the company still faces the challenge of justifying its high valuation amid lower industry spending and tougher market conditions.
Hart has long been a prolific actor, comedian, and businessman. His ambitions extended beyond producing film and television projects. He wanted to create a diversified media empire.
Over the years, he launched Laugh Out Loud, a digital comedy platform, and expanded into advertising with major clients like Lyft and Procter & Gamble.
In 2022, Hart consolidated its various projects under the Hartbeat banner, secured funding from Abry and appointed Thai Randolph as CEO.
Randolph's leadership saw efforts to diversify Heartbeat's business lines, but the company's growth coincided with the beginning of an economic downturn in Hollywood.
By late 2023, Hart had parted ways with Randolph and reduced staff in the advertising department.
In early 2024, former Warner Bros. executive Jay Levine stepped in to stabilize the company.
Levin's tenure focused on renegotiating deals and strengthening Hartbeat's financial position.
However, Levin and other senior executives recently announced their departure, leaving Hart at a crossroads.
With much of Hartbeat's core team remaining intact, Hart must now decide the future of the company.
He could pursue a merger, downsize operations, or find new ways to grow.
The Post requested comment from Hart and Hartbeat.
