A premier global media and entertainment company, Warner Bros Discovery (WBD) has laid off nearly 70 workers which are 14 per cent of its workforce at its HBO and HBO Max streaming service.
When news of the intended layoffs began appearing a few weeks ago the fans were afraid that original scripted shows would be canceled. The rumors of cancellation of shows were further fuelled by the announcement of the shelving of ‘Batgirl’, which was completed at an expense of about $70 million.
The economic slowdown post the pandemic has caused lots of companies globally to be part of making layoffs. However, the job cuts at Warner Bros Discovery which is 14% of its employees at the streamer are part of a larger effort at Warner Bros.
Many of the employees who lost their jobs were members of teams that had been led by former HBO Max chief content officer Kevin Reilly that no longer fit within the new structure of Warner Bros.
A report said, “Unscripted and live-action family programming for HBO Max, the streaming service, were most affected.”
David Zaslav, CEO and President of Warner Bros said that Discovery now the parent company of HBO is resorting to these cost-cutting measures. David Zaslav is combining HBO Max and Discovery+ to form a new streaming service that will launch in the U.S. in mid-2023.
The layoffs will primarily be from the division’s reality, casting, and acquisitions departments. One of the people said that Other departments affected include business affairs, programming, and production.
The restructuring follows the official merger of AT&T’s WarnerMedia and Discovery Inc. about three months ago. AT&T reportedly received $43 billion in cash and debt. However, a debt burden of $53 billion still exists and the Company is now trying to cut costs to save $3 billion in 2023.
