Warner Bros., which is owned by Time Warner (TWX), announced that layoffs will hit about 1,000 employees.
The Warner Bros. layoffs were announced by CEO Kevin Tsujihara on Tuesday. In his announcement, Tsujihara said that the layoffs were part of an effort by the studio to shrink annual overhead costs by $200 million. The layoffs will affect roughly 12% of the studio’s employees, reports The New York Times.
The Warner Bros. layoffs come after the studio had a disappointing run in the box office. The company currently sits at number three in the box office. It has held the first or second spot in the box office for nine out of the last 10 years, NYT notes.
Here is a section from Tsujihara’s announcement to employees on Tuesday that was obtained by Business Insider.
“There is no easy way to deliver today’s message. As you know, we at Warner Bros. have committed to reducing costs across the company in order to meet our long-term financial targets, and that includes cutting staff. These changes are challenging, but we believe they will allow us to reallocate resources and position the company for growth and stability in the years ahead.
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