AT&T WarnerMedia Is Said to Cut Hundreds of Jobs

AT&T's entertainment arm, WarnerMedia, shuffled its executive ranks and is following that up with hundreds of job cuts, a report says.
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WarnerMedia, the entertainment arm of AT&T  (T) - Get Report, is planning to cut 800 staffers at its Warner Bros. and HBO operations as part of a restructuring put in place by Chief Executive Jason Kilar, a media report says. 

People familiar with the matter told Variety that starting Monday Warner is expected to pare about 650 people and HBO will dismiss 150 to 175 staffers. 

The moves come after Kilar unveiled updates to the company's executive ranks on Friday. Three top executives stepped down, including WarnerMedia entertainment and direct-to-consumer Chairman Bob Greenblatt, content chief and TBS, TNT and TruTV President Kevin Reilly, and Keith Cocozza, executive VP of corporate marketing. 

Kilar also elevated streaming executive Andy Forssell to lead a new HBO Max operating business unit. Kilar became CEO of WarnerMedia in May, succeeding John Stankey, who is now CEO of AT&T. 

"Simplifying our approach and narrowing our focus goes beyond, for example, having one content organization vs two. It also means that we will be reducing the size of our teams, our layers, and our overall workforce," Kilar said in a company memo announcing the executive shakeups Friday. That memo was obtained by CNBC. 

AT&T purchased Time Warner for about $85 billion in 2018. 

AT&T said that HBO Max had around 36.3 million customers in the second quarter, which is up from 34.6 million customers at the end of last year thanks to the 3 million customers the service added in the second quarter.

Revenue from WarnerMedia fell 23% to $6.8 billion as film production stopped and movie theaters closed due to the coronavirus pandemic lockdowns.

AT&T shares at last check were up 0.5% at $30.18.