Time Warner's Warner Bros. unit will be laying off workers at all levels across the company, according to a memo sent to employees by chairman and CEO Kevin Tsujihara.
The job cuts are a strategic move by the company that looks to put itself in a position that will allow for growth in the future.
"We are doing our best to minimize staff reductions," said Tsujihara. "However, and it pains me to say this, positions will be eliminated -- at every level -- across the studio."
Jeff Bewkes, the CEO of Time Warner, is pushing unit heads such as Tsujihara to make operations more efficient after his rejection of the $75 billion takeover offer of Rupert Murdoch's 21st Century Fox. Bewkes also promised investors that his standalone growth plan is capable of creating more value than accepting the takeover offer.
In the memo sent to employees, Tsujihara revealed that he has been developing a plan that would make the Burbank-California-based company operate more efficiently since becoming the CEO in March last year. He was previously the head of the home entertainment division of Warner Bros. before taking over the CEO role over former film head Jeff Robinov and former TV head Bruce Rosenblum.
Warner Bros. spokesman Dee Dee Myers declined to reveal the number of employees that would be laid off.
The memo to employees is sent out just days after a report revealed that Warner Bros. is planning to offer buyout deals to some employees, along with the possibility of firing some staff.
However, according to sources, cost cuts in the company, spanning through the television, film and home entertainment divisions, will not be limited to employee reductions.
The movies of Warner Bros. have turned in revenues of $1.08 billion so far this year in the United States and Canada, which represents a 15 percent decrease compared to the same period last year. The figure puts Warner Bros. behind the revenues of 20th Century Fox and Disney.
While Warner Bros. has released several successful films this year, including The Lego Movie and Godzilla, the studio has also had its share of disappointments. Leading the list is big-budget science fiction film Edge of Tomorrow that starred Tom Cruise, which has only grossed over $100 million locally.
Time Warner Turner Broadcasting division CEO John Martin has previously offered buyout deals to around 6 percent of the unit's U.S. employees, which includes workers from TBS and CNN.
