WBD Cuts Nearly 100 Jobs as Cable TV Business Continues to Shrink

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Warner Bros. Discovery (WBD) has implemented another round of job reductions, focusing this time on its conventional cable television sectors. With the company’s linear business facing a downward trend due to cord-cutting and changing viewer preferences, it is reported that less than 100 employees have been dismissed from various networks within WBD.

As a loyal supporter, I can say that the layoffs at WBD have affected various departments and locations within their cable networks such as TNT, TBS, CNN, Food Network, Discovery, TLC, and Turner Classic Movies. According to my source from Variety, no specific department or region was primarily affected; instead, these cuts were described as strategic and selective. This action is part of the company’s ongoing drive for operational efficiency, as revenue from traditional media continues to decline.

Shrinking Revenue and Ratings Woes

Stepping into the realm of cinematic critique for a moment, allow me to share my thoughts on the first-quarter financial performance of Warner Bros. Discovery’s global linear TV networks business in 2025. Unfortunately, the picture isn’t quite as vivid as I’d hoped. Revenue dipped by 7%, settling at a sum of $4.7 billion. The most notable casualties were advertising revenue, which plummeted 12%, and distribution revenue, which fell 9%.

The company has pinned the blame squarely on the shoulders of dwindling network audiences – a woe that seems to be sharing its misery with many other players in the cable industry. It appears we’re witnessing the slow unfolding of a silent movie that none of us wanted to watch, where the leading characters are our cherished television networks.

Consequently, the cable division of WBD recorded a decrease of 15% in their adjusted operating income compared to the previous year, totaling approximately $1.79 billion.

As a movie enthusiast, I couldn’t help but notice the financial challenges facing Warner Bros. Discovery. Last month, S&P Global Ratings downgraded their credit standing to ‘junk’ status. This move was prompted by reduced profit predictions for 2025 and 2026, largely due to ongoing revenue and cash flow declines in their cable operations.

Internal Restructuring

To bring order and efficiency to its extensive business structure, WBD recently carried out a significant corporate restructuring. Now, the company is divided into two main sectors: one dealing with streaming services such as HBO, and another dedicated to managing its cable television offerings.

CEO David Zaslav expressed that the restructuring would be aimed at “generating chances as we assess various methods to maximize shareholder worth.

The restructuring is simply one aspect of WBD’s wider plan to adapt within an evolving media landscape. Even with budget reductions and structural changes, it seems that the traditional cable system is persistently losing ground, thereby continually straining profit margins.

Executive Pay Under Fire

Additionally, the job cuts follow closely after a humiliating decision by shareholders regarding Warner Bros. Discovery management. In the latest annual shareholder gathering, investors refused to endorse a non-binding resolution endorsing executive pay packages for 2024.

As a movie enthusiast who happens to be CEO David Zaslav, I found myself among those executives whose remuneration was up for a vote last year, and surprisingly, it got rejected. However, the board of directors has made it clear that they value the input of their shareholders, as reflected in this annual advisory vote on executive compensation. They take these results seriously and have promised to maintain their practice of constructive dialogue with us, their valued shareholders, to ensure a harmonious relationship moving forward.

Industry-Wide Cuts

The job cuts at WBD mirror a pattern happening throughout the media industry. Notably, Disney recently made a significant number of layoffs, affecting hundreds of their employees across TV, film, and financial departments. This is because many traditional media giants are moving away from linear television as revenue dwindles, instead prioritizing streaming and digital services while reducing expenses in conventional areas.

As a dedicated cinephile, I can’t help but feel the chill running down my spine as the latest round of cuts at WBD affects fewer than 100 employees. This action serves as a stark reminder of the challenging times facing traditional cable networks and the companies that remain deeply entrenched within them.

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2025-06-04 23:55