I really am trying to work up what the method of cuts could be so I was hoping for some other opinions on that? Will they thin every part of the company and expect the remaining employees to pick up more work, or will they target specific parts of the company?
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They should probably clean out HBO as they just are positioned to compete. When HBO was the only game in town they didn't have to. Now people will use Netflix, Amazon Prime or choose from many others and HBO just can't cut it. They'll need to turn it into something that doesn't just appeal to niche audiences.
Layoffs are happening right now. People are too afraid to speak up. Shame.
Too bad ATT doesn't 'rethink the possibility' of ending some of the massive sponsorships in every event known to man and do some cost-cutting that way.
Winter is coming...
There was an article from a previous thread on this site.
https://deadline.com/2019/03/warnermedia-boss-john-stankey-dismisses-reports-of-penny-pinching-says-layoffs-caused-by-will-be-at-the-margins-1202569158/
"The executive reshuffling at WarnerMedia will not result in “massive” layoffs, despite reports to the contrary" ... "“On the margins, there will probably be some” layoffs, Stankey said. “But this notion that there will be massive layoffs is wrong. "
It's real easy to figure out where the layoffs are going to come from, because it is going to be from the divisions of the company that show financial.
And that is first and foremost the entertainment group, which is described as "Entertainment Group provides video, including over-the-top (OTT) services, broadband and voice communication services primarily to residential customers. This business unit also sells advertising on DIRECTV and U-verse distribution platforms."
And under that group, the item "Retail Consumer Switched Access Lines" is showing the most severe decline.
And on their last 10-K, the phrase "workforce reduction" only shows within Entertainment Group area. The Entertainment Group doesn't include Warner Media as of the last reports, because that appeal hadn't been decided when the reports came out.
Warner Media looked good in the financial reports, making a good contribution to the company's bottom line.
Well, an article I just read said they can’t “afford to spend $1 more than necessary on administration costs”, so obviously expect a bloodbath there after a few months.
They can start here:
WarnerMedia is investigating claims that Warner Bros. chairman and CEO Kevin Tsujihara promised acting roles in exchange for s-x as detailed in The Hollywood Reporter Wednesday.
Think about it. Jobs that are common between both companies will be first. Things like the business office, HR, IT etc.