The Wall Street Journal reported yesterday that AT&T is planning thousands of layoffs in HBO, Warner Bros., and other parts of WarnerMedia to cut costs by up to 20 percent.
WarnerMedia was called Time Warner Inc. before AT&T bought the entertainment company in 2018. Layoffs and cost reductions are nothing new in AT&T in general, including WarnerMedia. But WarnerMedia has taken a big hit since the epidemic began. AT&T laid off around 600 people from WarnerMedia in August, a prelude to the new cuts surfaced yesterday. The Journal wrote:
AT&T’s WarnerMedia is restructuring its workforce as it seeks to reduce the income of coronavirus epidemic drains by up to 20 percent from movie tickets, cable subscriptions and television commercials, which are familiar to the public.
The overhaul that begins in the coming weeks will see thousands of layoffs at Warner Bros. studios and TV channels such as HBO, TBS and TNT, people said.
WarnerMedia told the Journal that it has been greatly affected by the epidemic and plans to focus on growth opportunities. WarnerMedia said, “We are in the middle of that process and there will be increased investment in priority areas and unfortunately others will be lacking.” Earlier this year, WarnerMedia had about 30,000 employees.
We asked AT&T and its WarnerMedia division for more information about layoffs today and we will update this article if we get a response.
Shortly after purchasing Time Warner, AT&T said that HBO needed to produce original content, despite the network’s history being successful with small, high-quality lineups and shows. The HBO and Turner owners left the company amid restructuring in 2019.
WarnerMedia revenue and AT&T share price drop
AT&T will report third quarter earnings later this month. In its Q2 2020 earnings report, AT&T stated that HBO revenue was $ 1.6 billion, up 5.2 percent year-over-year. Warner Bros. revenue was $ 3.3 billion, down 3.9 percent. Turner had revenue of $ 3 billion, down 12.4 percent.
Comcast’s NBCUniversal division and Disney have also been trimmed during the epidemic.
AT&T is struggling on several fronts. It has lost more than 7 million TV subscribers since mid-2018, and the ongoing effort to sell DirecTV has so far brought bids for the satellite company’s AT&T in 2015 at a price of about one-third. is. On the broadband front, AT&T stopped selling DSL to new customers and laid off thousands of network technicians instead of expanding its fiber-to-home network.
As the Journal stated, “AT&T shares have fallen nearly 28 percent this year, lagging rivals such as Comcast and missing the stock market’s record run.”