Warner Bros. Entertainment will cut about $200 million from its budget, its chief executive said Wednesday to investors, according to media reports.
Kevin Tsujihara, speaking at an investor’s day in New York for Warner Bros. parent Time Warner Inc., said that he would create a “leaner” organization for the Burbank film and television studio, according to the Hollywood Reporter.
"We are firmly committed to improving our margins," Tsujihara told investors, according to a Los Angeles Times story. "Through that process we have committed to cutting costs significantly."
Tsujihara gave no details on the number of staffing cuts but they are expected to be across all divisions of the studio operation, the Times reported.
Word about potential layoffs at Warner Bros. surfaced in early September, which resulted in a memo to employees from Tsujihara confirming the cuts.
The layoffs are said to be triggered by pressure to cut costs from Jeff Bewkes, chief executive of Time Warner. He has promised investors that the company can create more value by remaining independent and efficient.
In July, Time Warner rejected an unsolicited $80 billion acquisition bid from media mogul Rupert Murdoch, an offer that Murdoch formally withdrew in early August.
Tsujihara also outlined the studio’s theatrical slate for the next six years that will include 10 movies based on characters from DC Entertainment, including Wonder Woman, The Flash, and Aquaman; three spinoffs from the “Harry Potter” franchise penned by “Potter” author J.K. Rowling; and three Lego-branded movies.
“The demand for high-quality video content is growing fast as new technologies have created new platforms and millions of new connected consumers,” Tsujihara said in a prepared statement. “The opportunity is huge. And no studio is better positioned to take advantage of it than Warner Bros.”