LOS ANGELES (AP) — Time Warner Inc.'s Warner Bros. Entertainment movie studio said Tuesday it is eliminating nearly 800 jobs, or 10 percent of its global work force, and is examining further cost reductions.
The cuts come after the studio posted a 9 percent drop in third-quarter revenue to $2.88 billion, despite the success of the summer blockbuster, "The Dark Knight." Earlier this month, parent Time Warner said it will post a loss for the full year due to a $25 billion write-down of its assets in cable, magazines and Internet, caused in part by the advertising slowdown.
"Despite the fact that the company performed solidly in 2008, this decision reflects changes necessary for stability and growth going forward," the studio's top executives, Chief Executive Barry Meyer and President Alan Horn, told employees in an e-mail Tuesday morning.
"Shifting consumer demand and the overall state of the economy have affected companies around the world, and Warner Bros. is not immune," they said.
Most of the jobs will come out of the studio's headquarters in Burbank, California, through a mix of layoffs, the elimination of open positions and outsourcing, said spokesman Scott Rowe.
About 300 jobs in information technology and accounting are being outsourced through French company Capgemini and some of the jobs will move to India and Poland. About 100 of those back office positions will be offered to current employees who will continue to be based in Burbank.
Some 300 other people will be laid off and 200 open positions will not be filled.
Warner Bros. said the subsequent cost savings will be substantial but didn't elaborate. But executives suggested further cuts might be in the offing, noting "We will also continue to review our global operations to make sure we're operating as efficiently and effectively as possible."
No decision has been made about the studio's international operations.
Time Warner shares were down 61 cents, or 6.4 percent, at $9.01 on Tuesday afternoon.
Copyright 2009 The Associated Press.