WarnerMedia Planning to Cut Workforce Upwards of 20%

WarnerMedia CEO Jason Kilar is continuing to clean house since being hired earlier this year by AT&T CEO John Stankey to run the former Time Warner entity. Kilar, who formerly headed Hulu, reportedly is seeking additional entertainment cuts approaching 20% of the company’s workforce since eliminating 500 positions in August. Those layoffs included Ron Sanders, president of Warner Bros. worldwide theatrical distribution and president of Warner Bros. Home Entertainment. Cuts in the coming weeks are expected at Warner Bros., HBO, TBS and TNT.

“Like the rest of the entertainment industry, we have not been immune to the significant impact of the pandemic,” a WarnerMedia spokesman told The Wall Street Journal, which first reported the restructuring. “We are in the midst of that process and it will involve increased investments in priority areas and, unfortunately, reductions in others.”

WarnerMedia reportedly had 26,000 employees when it was Time Warner. With the entertainment sector in the midst of the coronavirus pandemic, and studio and TV production in slow motion, WarnerMedia is putting much of its resources into HBO Max, the recently-launched SVOD and pending AVOD platform.

Max had about 4.1 million people activate the app in the first month since launching on May 27. When combined with a negotiations impasse with Roku regarding placement of the Max app on the streaming media manufacturer’s platform, the SVOD and pending AVOD platform significantly lags behind rivals Disney+, Amazon Prime Video and Netflix.

In addition, Warner Bros. continues to push back theatrical releases to 2021, including most recently sci-fi reboot Dune, from December to next year. Robert Pattinson starrer The Batman has been bumped from 2021 to 2022. Patty Jenkins sequel Wonder Woman 1984 has been bumped three times to the current Dec. 25 release.

“There’s nothing that’s sacred anywhere in the business,” Stankey told The Journal earlier this year. “WarnerMedia is no exception to that.”

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