At least 600 people received word that they would launch on Monday at AT&T WarnerMedia as the mass break began as part of a restructuring led by new CEO Jason Kilar, according to reports.
A WarnerMedia spokesman did not immediately return FOX Business’s request for comment.
The move comes at the foot of an executive row on Friday, with WarnerMedia’s Bob Greenblatt and Kevin Reilly overseeing HBO Max̵7;s broadcast service forced to leave.
“We are raising HBO Max in the organization and expanding its scope globally,” Kilar said in a memorandum to staff. “I want to thank Bob and Kevin for getting us to this point with the integration of HBO and the Turner Networks legacy and the launch of HBO Max. It has been such an impressive sequence of events, and we are so much better for it.”
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In that announcement, Kilar also warned that the layoffs will continue towards WarnerMedia’s bottom line.
“Simplifying our approach and narrowing our focus goes beyond, for example, having a content organization vs. two. It also means that we will reduce the size of our teams, our layers and our overall workforce.” said Kilar. “These reductions are in no way a reflection of the quality of the people affected and their work. It is simply a function of the above changes I believe are necessary for WarnerMedia and our collective ability to better serve customers. “
Media companies are feeling the pain of closing down the coronavirus pandemic. Warner’s film and television studios have not been able to release any theatrical films or launch any new television productions. These developments have hurt advertising revenue, cash receipts and content sales for the media giant.
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Revenue from the WarnerMedia segment, which includes HBO, fell 22.7% to $ 6.8 billion in the second quarter, with the pandemic having an impact of $ 1.5 billion in sales.
“I understand that this is a lot to introduce. And none of us should expect the above changes to be easy,” Kilar added. “That said, we are successfully navigating a common pandemic and I know that while the above changes may be challenging, we will also successfully address them as well. Since each of you needs some time to digest “above, I hope you become more and more energetic by the way, together, we are brave in relying on the future and this historic opportunity that is right in front of us.”
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