Warner Bros. will cut costs by $200 million annually, according to the chairman and CEO Kevin Tsujihara during a presentation to Time Warner investors on Wednesday.
“We have committed to cutting costs significantly,” said Tsujihara.
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Layoffs are expected at Warner Bros., individuals with knowledge of the situation recently told TheWrap, and the studio is expected to make reductions across the board. However, due to Tsujihara’s commitment to increase content output, divisions like production are expected to remain unaffected. As the studio announced the move, it also revealed an ambitious slate of superhero films and television series.
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In a memo last month, Tsujihara noted that Warner Bros. would do its best to layoff as few staffers as possible.
“We are doing our best to minimize staff reductions,” wrote Tsujihara in the memo. “However, and it pains me to say this, positions will be eliminated — at every level — across the Studio. In making these decisions, we will follow all applicable protocols. Your divisional and departmental leadership will share more information with you about these changes in the months ahead.”
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The studio has about 8,000 employees and saw $5.03 billion in worldwide grosses in 2013. It is currently running in third place among the major studios after a disappointing summer that saw films like “Jersey Boys” and “Blended” struggle at the box office.
Earlier in the day, Time Warner Chairman Jeff Bewkes noted that Time Warner “will more than double our earnings over the next several years.” In August 2014 Time Warner turned down a takeover bid from Rupert Murdoch for $80 billion which has forced frugality throughout its subsidiaries.
Time Warner stock was up 2 percent shortly after the announcements.