Warner Bros. is slashing its worldwide staff by 10%, resulting in the loss of almost 800 jobs, according to a memo from studio heads Barry Meyer and Alan Horn that was distributed to employees this morning. The cost-cutting effort is expected to save approximately $50 million a year in costs for the movie and television studio.
In the memo, Meyer and Horn state: "This was a very difficult decision to make, and one that was not made easily. Despite the fact that the company performed solidly in 2008, this decision reflects changes necessary for stability and growth going forward. The changing entertainment business landscape, shifting consumer demand and the overall state of the economy have affected companies around the world, and Warner Bros. is not immune to these factors."
According to the Los Angeles Times, Walt Disney Co. is also soon expected to take the knife to its ABC television, a move that would follow on the heels of downsizing at Clear Channel (which lost 1,850 jobs or 9% of its workforce on Tuesday), Electronic Arts and Lionsgate.