WarnerMedia CEO Jason Kilar has sent out a company-wide memo, saying the company will be rationalizing its operations and eliminating jobs, CNBC reported. In the letter, Kilar said the moves follow previously announced changes in the organisation, simplifying its entertainment studios, pushing HBO Max to the fore and consolidating commercial activities into one body. The company now wants a “smaller WarnerMedia team” and for the removal of different “layers.” The AT&T unit will soon announce how many jobs will be eliminated in North America and which roles will change. On the international front, the company is still reviewing different changes, the timing of which will vary according to local regulatory requirements.
CNBC noted the layoffs began on 10 November as WarnerMedia restructures around streaming video and focuses on growing HBO Max, the streaming service launched in May of this year. Sources familiar with the matter expect over 1,000 jobs to go, with the number possible rising to the thousands. Many top executives have already left since AT&T closed its acquisition of Time Warner for USD 85.4 billion in June 2018, including ex-HBO chief Richard Plepler, ex-Turner President David Levy and ex-Warner Bros Entertainment CEO and Chairman Kevin Tsujihara. WarnerMedia CEO Jason Kilar, who began in his position earlier this year, has been looking at further refreshing the company organisation and strategy.
AT&T recently reported third quarter results hit hard by the impact of the coronavirus pandemic on its entertainment business. While group revenues fell to USD 42.3 billion from 44.6 billion, revenues at WarnerMedia in particular sank 10 percent. Results at HBO were more promising, with the company more subscribers than expected.
With its eye on HBO and its streaming service, AT&T has been considering bids for a minority stake in its DirecTV pay-TV business, as well as in AT&T Now and U-Verse. AT&T bought DirecTV five years ago for USD 67 billion including debt. The operations are now valued at under USD 15 billion, according to the latest reports.
