Time Warner to Layoff up to 600 Employees
Media and entertainment giant Time Warner Inc. is planning to fire up to 600 employees from its various cable-network divisions. This layoff is planned to ease up cash for rising sports rights and more original programming. The figure is about 4% of the total workforce at its Turner Broadcasting cable TV division.
The Turner Broadcasting System Inc. division runs various cable networks such as CNN, TNT, HLN, TBS and the Cartoon Network, which has almost 13,500 full-time employees working with them.
As per some reports, the division can also extend its layoff to more than 1,000 employees. CEO John Martin has promised that his company will see a transition in 2015 to become a company that is more streamlined, nimble and efficient. Although the division has been generating lots of profit for Time Warner's, but also continuously facing increase in its programming costs.
Workers will be first offered the buyout packages and if they do not agree with the proposal, they will then be given a job termination notice.
According to sources, Martin is planning to take a bigger leap in costs in order to renew TNT's contract to broadcast basketball games on TNT and TBS.
The sources added that Turner is making efforts to renew the last major sports deals of US. On the other hand, Martin along with Time Warner CEO Jeff Bewkes has promised to add more number of original programs in a proposal to lift cable sales.
The layoff of the employees might begin this week. Though, as per rules a company that is targeting layoff of more than 500 employees has to file a notice with the state authorities. And the entertainment giant has not fulfilled the requirement till now.
Regular trading session of TWX on Monday closed at $76.95, down $0.28 or 0.36% on 3.33 million shares.
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