Warner Bros. could adjust staff after losing $966 million in the first quarter

MADRID (EUROPA PRESS).- The American multinational media and entertainment company Warner Bros Discovery, owner of CNN, HBO and Warner Bros Studios, would be preparing cost-saving plans, including layoffs, in order to achieve its financial objectives. for the coming years, as sources familiar with the matter have indicated to ‘Bloomberg’.

The possibility of new workforce adjustments would be added to the departure of two thousand workers during the last twelve months, while only the company’s streaming unit could suffer cuts of hundreds of millions of dollars, especially in technology and marketing. .

On the other hand, the audiovisual conglomerate would also have decided to raise its subscription rates as it aims to reach one billion dollars (929.6 million euros) in revenue with the streaming services Max and Discovery+ next year.

In addition, the company published this Thursday the results corresponding to the first quarter of 2024, in which it managed to reduce its ‘red numbers’ by 9.6%, after losing 966 million dollars (898 million euros).

Warner Bros Discovery’s revenues totaled 9,958 million dollars (9,257 million euros), 6.9% less. Of these, distribution provided 4,985 million dollars (4,634 million euros) and content another 2,558 million dollars (2,378 million euros). These figures were 3.4% and 13.4% lower year-on-year, respectively.

Afterwards, advertising generated 2,148 million dollars (1,997 million euros), 6.5% less, while other miscellaneous income was recorded for 267 million dollars (248.2 million euros).

The total expenses incurred by the multinational during the quarter, including production, sales, administrative or depreciation costs, among others, were 10,225 million dollars (9,505 million euros), 9.2% less . Interest deducted an additional 515 million dollars (478.8 million euros).

“We will soon launch Max in 29 countries in Europe, and the range of content for Max for next year is one of the most powerful in our history. Warner Bros. Pictures has also started 2024 strong, being the first studio to reach one billion of dollars [929,6 millones de euros] at the global box office abroad, and has a great catalog of titles underway,” said the group’s president and CEO, David Zaslav.