Warner Bros. Discovery (WBD) has laid off more employees after eliminating 14% of its HBO Max workforce earlier this summer.
On Tuesday, the company's television studio cut 26% of its headcount (125 positions) across its scripted, unscripted, and animation divisions — laying off 82 staffers and opting not to fill an additional 43 vacant positions.
The media giant also shuttered its digital production arm Stage 13 and the 40-year-old Warner Bros. Television Workshop, a longstanding pioneer in fostering new and diverse talent.
The move adds to the company's broader restructuring efforts as it looks to slash $3 billion worth of costs over the next two years and prepares to combine HBO Max with Discovery+.
Warner Bros. Discovery declined to further comment on the layoffs. In a company memo, obtained by Deadline, chairman Channing Dungey stated:
"These are challenging times in the world at large, and a tumultuous time in our industry. For this kind of change to hit so close to home is incredibly difficult. But my hope is that these changes, made with an eye to a more focused business strategy, will strengthen and stabilize our company, maintain our great creative output, and better position us for continued future success."
The media giant reported a $3.42 billion loss in the second quarter, partly due to obstacles related to its recent merger.
Warner Bros. Discovery now expects 2022 adjusted EBITDA to come in between $9 billion and $9.5 billion, a decline from previous forecasts of $10 billion. Management also cut its full-year 2023 EBITDA guidance from $14 billion to $12 billion
"[David Zaslav] has got to magically saved $3 billion sometime in the next year," Peter Kafka, host of Recode Media, previously told Yahoo Finance Live.
"People will get laid off throughout the fall... it's a lot of bodies that they have to process, and they have to find ways to save money," Kafka added, pointing to the company's falling stock price, which is currently hovering at 52-week lows.
"Wall Street is saying that the combined assets of your company and what was the premier media company in the world are now worth a lot less," he said. "What can you do to make it more valuable?"
Alexandra is a Senior Entertainment and Food Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
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