WarnerMedia is aiming to cut costs by 20%, which could result in thousands of employees losing their jobs, a media report says.
A restructuring is expected to begin in the coming weeks, sources told The Wall Street Journal. It will affect the company's movie arm, Warner Bros studios, as well as television channels like HBO, TBS and TNT.
"Like the rest of the entertainment industry, we have not been immune to the significant impact of the pandemic," the company said in a statement to TheStreet.
"That includes an acceleration in shifting consumer behavior, especially in the way content is being viewed."
The statement went on to say that Warner will increase "investments in priority areas and, unfortunately, reduction in others."
Earlier this year, WarnerMedia began a round of layoffs that affected hundreds of staffers. Media reports said the first wave of layoffs was expected to total about 600 people.
Former Chief Financial Officer Kim Williams, entertainment Chairman Bob Greenblatt and television head Kevin Reilly have all been dismissed in recent weeks as the entertainment industry reels from the effects of the coronavirus pandemic.
Movie-ticket sales and television advertisement dollars have both taken a hit amid the pandemic and subsequent lockdown.
WarnerMedia's chief communications officer, Kevin Brockman, departed earlier this year after joining the company in 2019. He earlier had spent 22 years at Disney. (DIS) - Get Walt Disney Company Report
AT&T shares at last check were 1.2% higher at $28.62.