
EXCLUSIVE: The fragile state of the film and television business continues with another set of layoffs hitting the industry.
Deadline understands that Warner Bros. Discovery is making more cuts this week as part of another round of cost-cutting measures.
We hear that pink slips have started being distributed across the company including at Max and in some areas of production, business affairs and finance.
It comes a year after a round of layoffs that led to the departure of a number of network executives in its cable business.
Insiders say that this round is significantly smaller than previous cuts and it will impact small pockets of people in a variety of business areas. People are being informed today and through the week and we’ll update you as we hear more.
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This comes a week after around 100 people were laid off at Warner Bros. Discovery-owned news network CNN last week. CNN Worldwide CEO Mark Thompson said that about 2.9% of its 3,500 employee workforce was impacted.
However, Warner Bros. Discovery is very much not alone this time when it comes to layoffs. Paramount is expected to make more layoffs as part of its cost-cutting measures ahead of the close of its acquisition by David Ellison’s Skydance, a move that comes after it already cut around 800 people earlier this year. Disney is also expected to make more cuts over the coming months.
This year, companies that made layoffs include Amazon, Netflix, NBCUniversal, YouTube, Roku, Sony, Marvel, Fifth Season, Lionsgate, Starz, Chernin Entertainment, Blumhouse, and most talent agencies including CAA and UTA, leading to one veteran TV executive to call it “a full-scale depression for the entertainment industry”.
At the end of last year, Warner Bros. Discovery CEO David Zaslav addressed previous cuts. “I remember our first big layoff. It was brutal. But, Warner Bros. and Time Warner and even Discovery, these are companies that had never really been restructured for the future. And so, we decided that we have to have courage; we have to figure out how to restructure these businesses for the future. We said no sacred cows,” he told Andrew Ross Sorkin during a Q&A at The New York Times’ DealBook conference.
Earlier today, one media analyst suggested that WBD needed to do something to address the fact that the stock has declined 70% since the merger. BofA Global Research analyst Jessica Reif Erlich said “the current composition as a consolidated public company is not working” and “all options need to be on the table”.
A few producer friends and I were in this round to get cut although we’re considered contractors. 5 years is a long time to be employed as an animator with a company that went from Discovery to WBD – from working on the Puppy Bowl to creating titles for House of the Dragon. It’s been a rollercoaster but a great experience overall. Back to the whacky world of freelancing.
I worked 9 years at WBD, starting at Turner back in 2014 in Europe. The time at Turner will dedinitely be the best in terms of everything in my career.
What a pitty that all this is/was happening.
7 here at WB. Was one of the best times of my career. It is sad, but things will be okay.
As a former employee of Discovery, I have seen the stock decline over 70%. Luckily I divested most of it when I was laid-off, but have still lost a considerable amount with the small amount I kept.
Having been in the room with Zaslav many times, he’ll always tell you he’s a “content” guy, and how important it is to the company. He also told us we should be getting together on our days off and brainstorming ideas for the next big show (of course, we were already working 80+ hours a week because we were always understaffed).
SO, here’s what I propose… Given Zaslav has already made probably close to a billion dollars on paper, he should tell everyone that he’ll work for $1 until WBD’s problems are solved.
I don’t see how you can layoff thousands of people in the name of cost-cutting, yet not cut your own salary/bonus. In what universe does that make any sense?
Shareholders should revolt, but I think as long as John Malone and other media billionaires holding a majority of the stock tire of Zaslav, he’s there to stay.
Our union boss mentioned at our last meeting on Sunday that all the studios are in trouble and re-organizing. Based upon what all the guilds and unions are allowing in their contracts concerning absolute lack of AI restrictions, this current layoff may pale in comparison to the bloodbath of Hollywood production in general that’s coming. You see, the studios have dga, wga, and sag elements ok’d in their feeble ai language, now iatse crafts are the final piece to feed the AI learning and usage machine to instantly generate set design, costumes, hair, etc. There has been studio mismanagement for sure, but actors, directors, writers, and crafts and crew people have no one to blame but themselves for the coming demise.
David Z Inherited one of the biggest messes i have ever seen. Turning around this ship was delayed by the strike. I hope that people give the situation another 24 months to get this house in order. It’s easy to be a cynic. Being a problem solver is another matter altogether.
Nice try intern