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Warner Bros. Discovery's gutting will continue through 2024

Oct 25, 2022
Illustration of the HBO Max and Discovery+ logos merged with a play icon in the middle.

Illustration: Gabriella Turrisi/Axios

The gutting of the brands within Warner Bros. Discovery will likely continue through 2024.

Why it matters: Scrapping "Batgirl" is far from the only heartache WBD employees and its partners will face over the coming years as CEO David Zaslav delivers on his promise of $3 billion in synergies.

Driving the news: In an SEC filing on Monday, WBD said it's expected to incur $3.2 billion to $4.3 billion in restructuring charges:

  • Content programming write-offs = $2 billion to $2.5 billion
  • Organizational restructuring = $800 million to $1.1 billion
  • Facility consolidation and contract termination = $400 million to $700 million

Details: WBD hasn't publicly hinted at any future spinoffs/separation of its brands. Rather, the company is steadfast on strategic — but often dramatic — cuts from within.

💭 Kerry's thought bubble: The fear of more cost cuts and layoffs is an M&A byproduct, and can be demoralizing and distracting to day-to-day work productivity. The WarnerMedia employees who went through the AT&T acquisition of Time Warner are all too familiar with this feeling.

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