structural:reformatting
Declining years at MGM

The post-war years saw a gradual decline in profits for MGM and the other studios. The number of high-grossing films in 1947 dwindled to six, compared to twenty-two a year earlier. MGM had to let go many of its top producers and other executives. Mayer was pressured to tighten expenses by the studio's parent company, although Mayer's reputation as a "big-picture man" would make that difficult. They began looking for someone, another Thalberg, to redo the studio system.

In the interim, Mayer kept making "big pictures". When RKO turned down financing of Frank Capra 's State of the Union in 1948 because of its expensive budget, Mayer took on the project. He filled the cast with MGM stars including Katharine Hepburn, Spencer Tracy, Van Johnson, Adolphe Menjou and Angela Lansbury, but the film only broke even. Nicholas Schenck called Mayer and insisted that he "cut, cut", recalls director George Sidney. Mayer replied, "A studio isn't salami, Nick." "L.B. would ask only one question: 'Can you make it better?' It was all he cared about", said Sidney.

As pressure built to find a new Thalberg-style manager to handle production, Dore Schary was brought in from RKO, and began work on July 14, 1948, as vice president in charge of production, working under Mayer's direction.

Some long-time studio executives saw this change as a sign of the eventual downfall of MGM. When she heard the news, Lillian Burns Sidney, George Sidney's wife, marched into Mayer's office and announced, "Now you've done it. You've ruined everything." She told Mayer that she was afraid Schary would eliminate all future musicals, comedies and adventure movies, and replace them with the "message" movies that he preferred. She expressed her fear: "They won't have need for anybody around here. Even you! You'll see."

By mutual consent with Loew's, Mayer resigned from MGM in August 1951. On his final day, as he walked down a red carpet laid out in front of the Thalberg Building, executives, actors and staff lined the path and applauded him for his contributions. "He was so respected," said June Caldwell, Eddie Mannix's secretary. Many assumed that his leaving meant the end of an era. Actor Turhan Bey said, "In every meaningful way, it was the end of Hollywood."

Mayer, for a period after he left MGM, tried to finance and assemble a new group of film stars and directors to produce his own films as an independent. He told the press that his films would carry on in the tradition of MGM's previous style of film subjects. In 1952, he became chairman of the board and the single largest shareholder in Cinerama, and had hoped to produce a property he owned, Paint Your Wagon, in the widescreen process, but without success. He left Cinerama in 1954 when the company was sold.