News reports say Warner Bros. will cut 800 jobs, or about 10 percent of its worldwide workforce. Studio heads Barry Meyer and Alan Horn told employees in a memo on Tuesday morning.
The memo, in part, read, "This was a very difficult decision to make, and one that was not made easily. Despite the fact that the company performed solidly in 2008, this decision reflects changes necessary for stability and growth going forward. The changing entertainment business landscape, shifting consumer demand and the overall state of the economy have affected companies around the world, and Warner Bros. is not immune to these factors."
"We have examined every aspect of our business in order to cut costs responsibly and to keep staff reductions to a minimum. One way to achieve these objectives is to outsource certain job functions to a third-party company. To that end, we will be outsourcing the U.S.-based components of certain parts of MIS and accounts payable. This initiative, as well as the ongoing analysis of our global MIS and finance and accounting structures, will be explained in more detail to those business groups directly impacted." (Per DEADLINE HOLLYWOOD DAILY).
The 800 positions include 200 eliminated open positions around the world, 300 outsourced (with a third being offered employment opportunities with French company Capgemini and based in Burbank) and 300 layoffs.
The ASSOCIATED PRESS reports that the cuts come after a posted 9 percent drop in third quarter revenue to $2.88 billion, despite the huge success of summer blockbuster THE DARK KNIGHT. Parent company Time Warner announced earlier in January that it will post a loss for the full year due to a $25 billion write-down of assets in cable, magazines and Internet, partially from an advertising slowdown.