The streaming service HBO Max will layoff 70 employees, or around 14% of its workforce. These layoffs are a result of the merger between WarnerMedia and Discovery, which took place last year in 2021.
These cost-cutting measures are being used by David Zaslav, CEO and president of Warner Bros. Discovery, the organisation that is currently the parent company of HBO, and they will have an influence on the departments of casting, foreign, acquisitions, and reality programming. According to reports, the decision will apparently help save billions after the merger, which can then be utilised to build a new corporate structure that will guarantee there won’t be any redundancies in the future.
Along with the adjustments and efforts to save and safeguard the majority of HBO Max’s scripted content, there has also been a restructuring. The restructuring comes nearly three months after AT&T’s WarnerMedia and Discovery Inc. officially merged. According to reports, AT&T received $43 billion in debt and cash.
There is still $53 billion in debt, therefore the company is attempting to slash expenses in order to save $3 billion by 2023. Several weeks ago, as rumours of the planned layoffs started to circulate, viewers feared that original scripted shows would be cancelled.
The announcement of the shelving of “Batgirl,” which was finished at a cost of roughly $70 million, furthered the rumours of show cancellation.