As Warner Bros. Discovery continues to cut costs, the David Zaslav-led media giant will implement a new round of layoffs, TheWrap has learned.
An individual familiar with the matter tells TheWrap the cuts are in the double digits but expected to impact under 100 employees in the company’s cable TV business, which includes TNT, TBS, CNN, Food Network, Discovery, TLC, Cartoon Network and Turner Classic Movies. The person added that no particular channel was impacted more than others and that no specific function was targeted.
The layoffs come as WBD recently reorganized the company into two operating divisions — Global Linear Networks and Studios & Streaming — fueling speculation that a spinoff of its linear business similar to Comcast’s Versant could be in the works. In August, Warner Bros. Television Group chairman and CEO Channing Dungey was appointed to lead WBD’s networks division after the retirement of Kathleen Finch at the end of 2024.
It also follows a credit downgrade from S&P Global to junk status, which the ratings firm attributed to continued challenges in the linear TV business.
In its first quarter of 2025, WBD’s global linear networks continued to suffer from cord-cutting, with profits falling 15% to $1.8 billion and revenue dropping 7% to $4.8 billion.
Distribution revenue fell 9% to $2.6 billion, driven by a 9% decrease in domestic linear pay TV subscribers, partially offset by a 2% increase in domestic affiliate rates. Additionally, distribution revenues were negatively impacted by lower international affiliate rates and international subscriber declines.
Ad revenue fell 12% to $1.8 billion, primarily driven by a 27% decline in domestic networks audiences offset by better trends in sports and international. Content revenue climbed 44% to $380 million, primarily due to the timing of third-party content licensing deals.
Looking ahead, Warner expects a 2% year over year headwind to ad revenues in the second quarter due to the absence of the Final Four, offset by carriage of the Stanley Cup Finals. The French Open and NASCAR will debut on TNT Sports in the second quarter, temporarily resulting in higher sports rights costs and production expenses on top of the annual escalation for existing sports rights.
Chief financial officer Gunnar Wiedenfels is forecasting a roughly $300 million cost increase in the second quarter of 2025 and said there would be “a little bit of a headwind” in the third quarter and “moderate tailwind” in the fourth quarter. He also declined to quantify what ad revenue would look like without the NBA.
In addition to WBD, Disney is laying off several hundred employees globally, with the cuts expected to impact a limited number of positions in marketing for both film and television, publicity, casting, development and corporate financial operations.
Shares of WBD have fallen 7.5% year to date, but are up 19.6% in the past year.
