Layoffs at Warner Bros. will begin Tuesday, according to individuals with knowledge of the cutbacks.
The film and television studio will cut approximately 1,000 jobs globally as part of a company-wide belt-tightening. The layoffs amount to more than 10% of the studio’s roughly 8,000-person workforce. Variety first reported last month that as many as 1,000 people could lose their jobs.
Severance packages for staff will likely include three weeks of pay for every year of service at the company. It is expected to tap out at two years of pay, according to an individual with knowledge of the plans. Sources stressed however that the packages will vary depending on an employee’s term of service.
The cuts across the film and TV divisions are expected to take place in two waves, with roughly half beginning this week. The remaining layoffs will be finished by the end of the calendar year. Among those areas expected to be most impacted are real estate, home entertainment, information and technology and finance.
Warner Bros. is not the only Time Warner division making staffing reductions. Turner Broadcasting and HBO are also laying off hundreds of people as part of an effort to reduce overhead expenditures.
At Time Warner’s investor day last month, Warner Bros. CEO Kevin Tsujihara alluded to the coming layoffs, saying the company would cut costs by $200 million annually and would “focus on driving margins through reductions in overhead, marketing and production efficiencies, as well as the ongoing transition to digital.”
Warner Bros. last instituted studio-wide layoffs in 2009 when it cut 800 jobs. The studio’s television division has fielded a number of hits such as “Mike & Molly,” “The Big Bang Theory” and this year’s new series “Gotham.” The Burbank studio’s film operation, however, has struggled, with box office misfires such as “Blended,” “Edge of Tomorrow,” “Jersey Boys” and most recently “The Judge,” starring Robert Downey Jr. and Robert Duvall. The poor reception of those pictures has threatened to overshadow profitable hits like “Annabelle” and “The Lego Movie.”