By Dave Campbell | January 21, 2009
Warner Bros. announced yesterday that they will be cutting 800 jobs (10% of their workforce) over the upcoming year. It would seem that the successful studio responsible for the 2008 box office smashes the Dark Knight & Sex and the City would be immune to any economic strains given the unfazed movie industry. Warner Bros. reported global ticket sales of $1.77 billion in 2008 which is a 25% increase over 2007.
As it turns out, the Time Warner owned company is scaling back due to the plummeting DVD sales over the recent months. “Every division is affected, and none are immune. Television, home entertainment, theatrical, corporate…all of our divisions, worldwide” Warner spokeswoman Sue Fleishman said. It was also stated in a released statement; “Warner Brothers is not immune to the changing entertainment business landscape, shifting consumer demand and the state of the global economy. Despite the fact that the company performed solidly in 2008, this decision reflects changes necessary for stability and growth going forward”.
These announcements follow previous moves at NBC Universal (700 job cuts in Oct. 2008), and Viacom cutting several hundred jobs at MTV & Paramount Pictures. As of now the Walt Disney Co. & 20th Century Fox have prevented large scale employee lay offs by reductions in their spending.
It’s not looking good kids but maybe with WATCHMEN & Harry Potter on the way later this year, WB will not suffer any further losses.