Warner Bros. Offers Buyouts to Employees, Layoffs Possible

Warner Bros. Offers Buyouts Employees, Layoffs
Getty Images/Michael Buckner

Warner Bros. is offering buyouts to an unspecified number of employees across all divisions in an effort to cut costs.

The studio’s new corporate communications chief Dee Dee Myers, whose first day on the job was Tuesday, had no comment about the move, first reported by Bloomberg News.

Studio parent Time Warner is under pressure from Wall Street to reduce costs in the wake of turning down Rupert Murdoch’s $80 billion takeover bid. The stock, which had jumped after the offer was unveiled on July 16,  plummeted following the Aug. 5 withdrawal by Murdoch.

Time Warner’s  Turner division, which includes CNN and TBS, began offering buyouts to between 500 and 600 of its U.S. employees last month.

Warner Bros. has been headed by chairman and CEO Kevin Tsujihara for the past year and a half.

Warner Bros. operating profit gained 29% to $234 million in the second quarter due to increases in home entertainment and TV. Revenue declined 2.4% to $2.87 billion due to a decline in movie performance.

Warner Bros.’ share of the domestic box office is $1.06 billion, with about 15% of the market and in third place behind Fox and Disney. That’s far short of the pace of 2013, when it led the box office with $1.86 billion.

 

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  1. Joe Grip says:

    Maybe they should let go of some of the overpaid, huge egos that they have in their labor relations departments. Those who are trustees at the entertainment trust funds and purport to have the best interest of the participants in mind — while really only having the best interests of their studios and their parent companies in mind!

  2. Not again says:

    Please lay off those making 6 figures, driving expensive cars, going out to eat & smoke breaks every half hour instead of the employees who work out in the heat, take mass transit, work 16 hour days & barely keep a roof over their heads!!

  3. Eddie says:

    Beautiful! They hire a remarkably overpaid communications “strategist” whose first move is to say nothing at all about the lower-paid people who are going to lose their jobs just as she starts hers. Brilliant move.

  4. Rupert Murdoch took a big swing at Warner Bros and Kevin Tsujihara has absorbed the takeover offer with as little drama as possible. Warner Bros has had a profitable year without any box office disasters in its tent, so until Kevin Tsujiara acts recklessly, the Rupert Murdoch’s of the world need to take him a bit more seriously in the future.

  5. Offering buyouts to long time employees…Depending on who they are, I’m betting it is not the serious production end. How about coming up with a really solid product. I have read about Warner Brothers screwing their talent going back to the 70’s. Maybe a look in the mirror is advised.

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