Updated from 12:35 p.m. EST with analysis from S&P Capital IQ.
NEW YORK (TheStreet) -- Time Warner (TWX) keeps cutting staff as CEO Jeff Bewkes tries to cut costs and streamline operations to appease shareholders eager for higher profits, and a higher stock price. Shares jumped 1.1% to $77.73.
Bewkes' ability to deliver on profits is being more closely scrutinized after he successfully rebuffed 21st Century Fox's (FOXA) buyout offer three months ago. Warner Bros. Entertainment, Time Warner's movie studio arm, plans to cut as much as 10% of its 9,000-strong workforce, according to an initial report on the job cuts from the Hollywood publication Variety.
Time Warner, though, was quick to temper Variety's job cut numbers. Warner Bros.' spokesperson Paul McGuire countered in an email that "there is no headcount target. Plans are still in process."
Nonetheless, it appears that those layoff plans have been on the agenda for more than a year, a source familiar with the matter told TheStreet. Time Warner's rejection of Fox's $80 billion takeover offer has expedited the layoff process, and investors are pressuring executives for moves that can push the stock to the levels shares traded before Murdoch pulled his $85 per share offer on Aug. 6. On July 21, Time Warner reached a high of $87.36.
Management is being told by shareholders that it needs to get the stock above $85, Morningstar analyst Neil Macker said in a phone interview. "Management is right-siding the company to reach those goals," Macker said.