Studio giant Warner Bros. said Tuesday it planned to axe around 800 jobs worldwide in the coming weeks, despite a record-breaking year at the box-office.
The studio confirmed it had emailed staff around the world warning of the pending job cuts, which amount to roughly 10 percent of its workforce, in a sign of the recession s impact on the entertainment industry.
In a copy of the email obtained by AFP, Warner Bros. Entertainment chiefs Barry Meyer and Alan Horn grimly said the cuts were necessary to keep down costs in the midst of the global downturn.
We are very sad to announce that based on the global economic situation and current business forecasts, the studio will have to make staff reductions in the coming weeks in order to control costs, the email said.
This was a very difficult decision to make, and one that was not made easily. Despite the fact that the company performed solidly in 2008, this decision reflects changes necessary for stability and growth going forward.
The changing entertainment business landscape, shifting consumer demand and the overall state of the economy have affected companies around the world, and Warner Bros. is not immune to these factors, the email added.
According to figures quoted by entertainment industry journal Daily Variety, Warner Bros. grossed a record-breaking $1.77 billion at the box-office in 2008, driven by the success of Batman blockbuster The Dark Knight.
The figure was a single-year record for any studio, Variety said. – AFP
