Time Warner Inc.s Turner Broadcasting unit said on Monday it will slash 1 475 positions, or 10% of its headcount, as part of its cost-cutting program aimed at redirecting funds to investing.
Time Warners Chief Executive Officer Mr. Jeff Bewkes said in a conference speech, which was cited by Bloomberg: “We have been in this process, and a lot of companies have, of trying to make our company more nimble and streamlined.” He called the lay-offs “tough news for those that are involved”.
The company announced that it will trim its workforce at 18 locations all over the world. The lay-offs will include dismissals at all levels – news, corporate jobs, entertainment and sports. The Turner Broadcasting division, which operates CNN, TNT and TBS, currently has about 14 000 full-time employees. The notification process of the employees involved will begin immediately.
The announcement of the lay-offs follows voluntary buyouts to 600 veteran employees in August this year. According to Turner Broadcastings announcement, the dismissals come as part of the divisions restructuring policy and includes cutting jobs, eliminating unfilled positions and voluntary departures.
Turner CEO Mr. John Martin, who took over the position in January, said in a memo on Monday: “It’s our responsibility as business leaders to focus Turner’s talent pool where individuals and groups will deliver the greatest return for the company, for Time Warner and for our shareholders.” Mr. Martin projected the lay-offs several months ago when he issued a memo announcing some of the units future plans to cut expenses and reorganize operations.
Time Warner Inc. settled 1.20% lower on Monday in New York at $73.82 per share, marking a one-year change of +15.87% and valuing the company at $63.10 billion. According to CNN Money, the 25 analysts offering 12-month price forecasts for Time Warner Inc. have a median target of $85.00, with a high estimate of $100.00 and a low estimate of $69.00. The median estimate represents a +15.14% increase from the last price of $73.82.
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