Warner Bros. To Lay Off 800 Worldwide

Published 5 years ago by , Updated February 23rd, 2014 at 12:33 pm,

warner bros Warner Bros. To Lay Off 800 Worldwide

I was going to make a government bailout joke, but it’s not funny when people lose their jobs – Warner Bros. is planning on cutting about 10% of its workforce, about 800 people.

Even though the studio brought in $1 Billion last year just with The Dark Knight, they’re battening down the hatches for a rough 2009. Although they pretty much brought it on themselves, the recent Watchmen business with Fox Studios certainly didn’t help the situation. It’s going to cut into their profits from the film and at this point despite all fanboy buzz we still don’t know how it will do at the box office (although I suspect pretty damned well).

According to Nikki Finke of DHD:

The 800 positions break down as follows: 200 open positions around the world; 300 outsourced (with a third being offered employment opportunities with Capgemini and continue to be based in Burbank), and 300 lay-offs.

And from Barry Meyer and Alan Horn of Warner Bros.:

“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.”

Of course it’s expensive to employ 8,000 people around the world and movies are getting more expensive to make all the time between production costs and sky-high actor salaries. And everything associated with film making is expensive – not only the production but all the glamour and keeping up appearances side of things.

It sucks, but we’re not out of the recession yet. This isn’t the first I’ve heard of companies hunkering down and trimming costs/employees in preparation for a bad 2009.

For more details and the full memo visit the link below.

Source: Deadline Hollywood Daily

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TAGS: the dark knight

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  1. How the hell a movie studio could piss through $800 million in profits from TDK (alone!) boggles my mind. Sure there have been crummy movies they’ve released this year; it happens to all studios every year! I’d like to see guys at the top cut some fat from their checks before letting down sizing. That’s just me though…

  2. Wonder if any of the big execs took pay cuts themselves

  3. Highly doubtful would be understating it, I’m sure.

    Vic

  4. The suits of W.B. give themselves fat salaries and then chop heads off when times are lean. CEO’s are disproportionately overpaid as if the entire company rides on them. It doesn’t. I make an small exception with Bill Gates. He was mostly worth his paycheck. Nevertheless, this crushes my spirit and reflects a panic in the economy where the common worker is nothing more than a disposal unit when times get tough.

  5. Hurray Capatalism..please note sarcasm…

    In the words of Tracy Chapman..

    “Poor People gonna rise up and take whats their’s”

    the rich will have nowhere to hide if the crap ever hits the fan…You can’t hide from 6 billion no matter how much you are worth… CEO’s and their sense of entitlement make me sick

  6. Capitalism…sheesh..said it before and I’ll say it again..I hate it when I don’t proof read..

  7. Hurray Capitalism….. Not sarcasm. It’s the most fair system out there I know I know self responsibility sucks.

  8. Yes, there are greedy people. But these greedy people OWN the company. THEY are the ones taking risks “Green-lighting” movies to be made. Do I agree that companies should be giving huge bonuses to their execs while the blue collar types just hope they can keep their jobs, no. But it is their company and they are allowed, or at least should be allowed, to do whatever they see fit, good or bad. When the best people no longer will work for them because of these practices their company will suffer and ultimately fail.

  9. @ Daniel F…What other systems do you have experience with for starters?

    It is in no way a fair system at all and you are deluding yourself if you believe that one..

    Self-responsibility does suck to people who don’t know how to act responsibly and don’t want to be accountable for anything…

  10. Those people are the type of people who hate capitalism. Indeed it would be much easier to live in a society where everyone just handed you what you wanted with out having to contribute to society. If only we could all remain childish instead of growing up.

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