“Today, we have arrived at a number of difficult decisions that are resulting in a smaller WarnerMedia team. This is a function of removing layers and the impact of consolidating previously separate organizations. Starting today in North America, we will be sharing which jobs are being eliminated and which roles have changed.”
These were the words of WarnerMedia CEO Jason Kilar in an email sent throughout the company. As reported by the Wall Street Journal, WarnerMedia is looking to cut costs by about 20%, which involves potential layoff numbers in the thousands. While sources indicate that the actual final result will not be as severe as reported, but will still affect around 5-7% of the workforce. Since the company's acquisition by AT&T, the restructuring aims to bring Warner Bros., HBO and Turner Broadcasting, which were once largely autonomous, into a more streamlined entity.
Previous CEO John Stankey has been moved into a new executive position at AT&T, while Kilar has been tapped as his replacement. In his memo to the company, Kilar summarized the last few months of decision making: "In August, I first shared news about how we were going to meaningfully change the organizational structure of WarnerMedia.... Many of you have patiently waited to hear how the reorganization would affect you personally, which is both uncomfortable and stressful. Reducing this period of uncertainty was one of the many reasons we pushed so hard to get through this work as quickly and as thoughtfully as possible, although it probably didn’t feel fast enough."
Layoffs are always difficult to experience, and Kilar's memo was sensitive to that fact. While the job losses are significant, and the market is under intense strain from the pandemic, Kilar expressed that the layoffs were not a sign of individual failures. His closing remarks were ones of appreciation and regret for the circumstances, and hopefully provided some small comfort to those who were let go:
To our colleagues who are leaving, I wish there were words to lessen today’s pain. Your contributions are a permanent part of this great company and today’s news does not change that. I am extremely thankful for all that you have done for this team and this mission. I hope that at some point you will look back on all of it with immense pride.
Until then, please stay well and safe.
Source: Variety