VARIETY reports that Time Warner is cutting 450 jobs from New Line, which was widely expected since February.
The cuts, announced Monday afternoon, leaves New Line with about 40 to 50 employees. A Time Warner spokesman told VARIETY about 40 New Line employees will be offered jobs within Warner Bros.
Dismissal notifications began Monday and will continue Tuesday.
New Line is expected to be kept at its home on Robertson Boulevard in West Hollywood rather than move into the Warner Bros. lot in Burbank. A New York office will also be maintained, but it is unclear at this point where that will be located.
New Line will keep its own development, creative and production teams as well as its own marketing, publicity and business affairs staff. Warners will take over distribution of completed films.
Jeff Bewkes, Time Warner's head, announced on Feb. 28 that the corporation was folding New Line into Warners. The move is expected to save the company $50 million annually if New Line makes six to eight movies a year.
New Line President and CEO Toby Emmerich has indicated that New Line will focus on niche and cult movies like WEDDING CRASHERS and FREDDY VS. JASON with occasional tentpoles like THE HOBBIT.
New Line was an independent studio for 40 years under Robert Shaye and Michael Lynne. Longtime production chief Emmerich was appointed to his new post in mid-March, and Richard Brener agreed to stay on as president of production two weeks ago.
Other execs expected to stay include Sam Brown, Michael Disco and Michele Weiss.