Warner Bros. Discovery Cuts 10% Of Movie Division Despite Big Hits

Core Insights - Warner Bros. Discovery is cutting 10% of its motion picture group staff despite recent successful film releases, aiming to create a fully global structure [2][4] - The restructuring is part of a broader transition from a US Home Office/International model to a unified global operation [3][4] - Recent hits include "The Minecraft Movie," which has grossed $955 million, "Sinners" at $366 million, and "Superman" at $510 million [5][6] Company Restructuring - The motion picture group has fewer than 1,000 employees, and the cuts are intended to reduce operational duplication [4] - Warner Bros. will be restructured into two units, with the Streaming and Studios division being named Warner Bros. and led by CEO David Zaslav [8][9] - The other unit, Global Networks, will be renamed Discovery Global and will include various cable holdings and streaming services [9] Financial Context - The restructuring follows significant financial pressures, including a $53 billion debt load from previous acquisitions and mergers [10] - Warner's ongoing cuts and restructuring reflect a broader industry trend of shifting from traditional cable and broadcast models to streaming [11] Industry Trends - Other companies, such as Comcast, are also restructuring, with Comcast spinning off most of its cable networks into a new company [12] - Skydance Entertainment is set to merge with Paramount Global, promising $2 billion in cuts and significant executive departures [13]