Warner Bros. Discovery's gutting will continue through 2024
- Kerry Flynn, author of Axios Pro: Media Deals
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.
- Shortly after the deal closed, WBD pulled the plug on CNN+.
- It then cut scripted programming at TNT and TBS.
- WBD laid off 30% of its combined ad sales teams. Warner Bros. Television's workforce was axed by 26%, eliminating 125 jobs.
💠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.