Warner Bros. CEO Kevin Tsujihara Begins Layoffs: "These Are Difficult Decisions"
The studio today begins cutting about 1,000 jobs from its workforce
As Warner Bros. begins the process of laying off about 1,000 workers company-wide, CEO Kevin Tsujihara sent a memo to the studio’s employees on Tuesday citing the "difficult decisions" made.
The layoffs are expected to affect more than 10 percent of the company’s 8,000-person global workforce. Most of the company's business groups will begin the process Tuesday. However, Tsujihara said, some groups, like finance, MIS and technical operations are undergoing more complex reorganizations, and staff changes won't be complete until the first quarter of next year. Additionally, some of the cuts in international operations won't take place until the first part of 2015.
"These are difficult decisions, and we don't take them lightly," Tsujihara wrote. "We examined every aspect of our businesses to ensure that we were restructuring in a way that would allow us to minimize the impact on our employees, while continuing to adapt to the changing global marketplace."
The memo did not specify terms of the separation agreements it will be offering, but Tsujihara said, "we will be as generous as possible with those who are impacted by these cuts."
As units across Time Warner look to cut costs, Tsujihara has told investors that he is looking to cut $200 million from the studio’s annual budget by reducing its workforce and paring back in other area like marketing costs.
Read the entire Tsujihara memo here:
There is no easy way to deliver today’s message. As you know, we at Warner Bros. have committed to reducing costs across the company in order to meet our long-term financial targets, and that includes cutting staff. These changes are challenging, but we believe they will allow us to reallocate resources and position the company for growth and stability in the years ahead.
We’ve now completed much of our company-wide review, and most business groups will be announcing staff changes this week, beginning today. However, some groups, including Finance, MIS and Technical Operations, have been engaged in more complex reorganizations; they will make some staff changes now, with most coming in the first quarter of next year. Similarly, international territories will proceed according to local policies and protocol, and most of their changes will be announced in the early part of next year.
I know that every employee around the world is a part of Warner Bros.’ success, and it’s difficult to lose colleagues who have helped make the Studio the global industry leader it is today. As always, we are committed to taking care of our employees, and we will be as generous as possible with those who are impacted by these cuts.
These are difficult decisions, and we don’t take them lightly. We examined every aspect of our businesses to ensure that we were restructuring in a way that would allow us to minimize the impact on our employees, while continuing to adapt to the changing global marketplace. With your continued help and support, I am confident that Warner Bros. will remain the best studio in the world, while preserving the culture that has made this company so special.