Bloomberg

First Turner and Now Warner Bros. — Report Says Studio Will Offer Buyouts as a Way to Increase Company Profit. Layoffs Are Possible

Sep 3, 2014  •  Post A Comment

“Time Warner’s Warner Bros. unit plans to offer buyouts to an unspecified number of workers as part of a drive to increase profit, according to two people with knowledge of the situation,” Lucas Shaw reports for Bloomberg.

The story reports: “The Burbank, California-based studio, led by Chairman and Chief Executive Officer Kevin Tsujihara, may fire staff if too few employees take the offer, said the people, who asked not to be identified because the matter is private. Cost cuts at the film, television and home-entertainment businesses will go beyond personnel, the people said, without being more specific.”

The report adds: “Warner Bros. operating profit rose 29 percent to $234 million in the second quarter on gains in home entertainment and TV. Revenue shrank 2.4 percent to $2.87 billion, reflecting weaker theatrical performance.”

A Warner Bros. spokesperson declined to comment to Shaw about his story.

To read more details about this, we urge you to click on the link above, which will take you to Shaw’s original article.

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3 Comments

  1. What kind of corporate mentality is this? If you enjoy an operating profit of $234 million in just the 2nd quarter shouldn’t you reward “your” people? Has he asked the share holders if buyouts and/or threats of layoffs is the SMART thing to do? Doesn’t he think a positive attitude from workers means anything at all?
    I’ve got an idea Kevin; why don’t you cut your salary and benefits in half? Think of all the jobs you’d save!

  2. This story is as old as Hollywood.

    Having been a free lancer most of my career, I never walked into a working situation thinking I’m here for twenty years. It would have been ideal, but the nature of the business has just never leaned that way. When a project is over, for whatever reason, move on.

    Many of the so-called (not all) executives should also be terminated, or rather never given the concept that they are ever permanent. The business relies on the swing of interest, opinions and feelings of the buying public at any given moment. We all know the headline on that is: FICKLE.

    I feel badly for the human carnage that is emanate among the ranks at these companies. I have been on both sides of the reality of work-income interruption. The infliction can be beyond description.

    There are positive ways to avoid mass destruction, however, based on history, they are seldom exercised.
    Peter Bright

  3. I understand cutting staff is your business is tanking. But profits are up, and business is generally good. So a billion dollars of profit a year isn’t good enough? So lets dump everyone over 50, and fire others…just to increase SHORT-TERM profits? (I mean, who cares about the long-term health of the company when your bonus is based on how well you did last week?)

    This sort of corporate-think is why America is struggling, and why the middle class is an endangered species. Sad.

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