Warner Bros. Discovery will sell its Knoxville headquarters and downsize to a smaller space in the area as a result of the $43 billion merger of the two companies.

CFO Gunnar Wiedenfels told employees in an email Thursday morning that the company plans to continue operations in Knoxville.

Knox News confirmed the email with a Warner Bros. Discovery executive familiar with the situation.

Neither the email to Knoxville employees nor the Discovery executive shared information about potential local layoffs.

In June, Reuters reported that Warner Bros. Discovery was planning to cut about 30%  (about 1,000 jobs) of its global advertising sales team. The cuts were first reported by The Information.

The West Knoxville building, located at 9721 Sherrill Blvd. is not yet on the market, but Discovery intends to move in June 2023, according to the email.

It's part of a company-wide evaluation of real estate holdings as the organization figures out how to bring together two media conglomerates efficiently.

The company self-reported 1,035 employees in the Knoxville area to the 2022 Knox.biz Book of Lists.

Wiedenfels wrote in the email that the local employee population is much smaller than the footprint of the Knoxville headquarters. After the move to a smaller, leased space, some employees may be moved to a hybrid work model or become fully remote.

“I understand that there is a lot of change at the moment, and I appreciate your ongoing hard work and commitment,” Wiedenfels wrote in the email.

He said there would not be changes to the daycare, wellness or café facilities before the move.

In 2019, Discovery invested $1.8 million to add the 2,200-square-foot wellness center and 3,500-square-foot fitness center. The child daycare center was added later.

The 189,000-square-foot building was built in 1985 and renovated in 2000, according to Knox County property records.

What is Warner Bros. Discovery?

This is the latest of many changes for Knoxville-based Discovery employees.

In May 2021, the company announced the merger as an attempt to compete in the streaming service market. The companies merged in April of this year.

The Warner Bros. Discovery brand now includes Discovery Channel, discovery+, CNN, DC, HBO, HBO Max, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, Warner Bros. and more, according to its website.

Discovery has seven active job postings in Knoxville.

A Knoxville Chamber representative told Knox News that Discovery is still a member.

In 2018, Discovery acquired Scripps Networks Interactive and its Knoxville hub.

Discovery Communications merged with the Knoxville-based Scripps in a $14.6 billion cash-and-stock deal. The company rebranded to Discovery Inc. and announced it would locate some of its operations in Knoxville. Discovery also acquired $2.7 billion of Scripps' debt.

Scripps Howard Broadcasting purchased the 13.7-acre property in 1994 for $3.4 million from Bagwell Communications. Scripps Network Inc. currently owns the property.

Silas Sloan: Covering growth and development in East Tennessee
Twitter: @silasloan| Email: silas.sloan@knoxnews.com
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This article originally appeared on Knoxville News Sentinel: Discovery will sell Knoxville office after Warner Brothers merger