Warner Bros. Discovery has recently made targeted job cuts across its linear networks as its cable TV business faces challenges with shrinking viewership. The media conglomerate’s linear TV business includes popular channels such as TNT, TBS, CNN, Food Network, Discovery, TLC, Cartoon Network, and Turner Classic Movies. The layoffs, affecting fewer than 100 employees, are part of Warner Bros. Discovery’s efforts to operate more efficiently in response to the ongoing decline in traditional pay-TV viewership.
In the first quarter of 2025, Warner Bros. Discovery reported a 7% decrease in revenue for its linear TV networks business, totaling $4.7 billion. The company attributed this decline to a 12% drop in ad revenue and a 9% decrease in distribution revenue, citing lower viewership as a contributing factor. Adjusted operating income for the cable TV group also fell by 15% to $1.79 billion during the same period.
These job cuts come on the heels of similar actions taken by Disney, which recently laid off several hundred employees across its TV, film, and corporate finance divisions. Additionally, S&P Global Ratings downgraded Warner Bros. Discovery’s credit rating to junk status last month, citing lowered earnings forecasts for 2025-26 primarily due to revenue declines in its linear TV operations.
In response to these challenges, Warner Bros. Discovery completed a reorganization into two divisions in the first quarter of 2025. One division comprises its streaming business (including HBO) and production studios, while the other includes the rest of its cable TV portfolio. CEO David Zaslav stated that the reorganization aims to create opportunities to deliver significant shareholder value, emphasizing the company’s commitment to adapting to the changing media landscape.
As Warner Bros. Discovery navigates the evolving TV industry landscape, the company remains focused on maximizing its strengths in streaming and studio segments while addressing the challenges faced by its linear TV operations. The recent job cuts and reorganization reflect Warner Bros. Discovery’s strategic efforts to position itself for long-term success in a rapidly changing media environment.
