The New York-based entertainment conglomerate is slashing 14% of its workforce in the reality unit, casting, and acquisition divisions.
Following weeks of speculation about restructuring HBO Max, Warner Bros. Discovery announced a 14% cut in its staff or about 70 jobs under the leadership of HBO and HBO Max chief content officer Casey Bloys. Those who are familiar with the matter said that the company is cutting down on workforce in its reality, casting and acquisitions departments.
The HBO Max layoffers come as no surprise to many, especially after Warner Bros. Discovery shelved the film "Batgirl" earlier this month reportedly for a tax write-off and has also removed several exclusive films from the streaming service, The Verge reported. Next summer, the company will replace HBO Max and Discovery Plus with one combined service.
Bloys said in a memo that Warner Bros. Discovery had been forced to male an "incredibly difficult decision" to either disband or restructure its teams, including those in the reality unit, casting, and content acquisitions teams.
Warner Bros. Discovery Several Internal Changes
The entertainment company's decision to pursue HBO Max layoffs and decrease its staff by 14% comes after Discovery closed on its $43 billion acquisition of WarnerMedia this April. As a result of the merger, Chief Executive Officer David Zaslav promised up to $3 billion in synergies. CNBC reported.
Two individuals reported that many of the company's employees who were let go were part of teams that were led by former HBO Max chief content officer Kevin Reilly and no longer fit within Warner Bros. Discovery's new structure. Reilly left the entertainment company back in 2020.
Meanwhile, Zaslav is on a mission to combine HBO Max and Discovery to form a new streaming service that is set to launch in the US in mid-2023. The service will feature reality programming from Discovery, making HBO Max's reality division redundant and unnecessary.
HBO often works directly with casting directors instead of internal staff and thus phased out a number of "pay-one deals," a process that acquires licensed films. Several of HBO's other departments have been affected by the layoffs, including business affairs, programming and production, but no shows will be affected or canceled as a result of the job cuts.
Warner Bros. Discovery Switches Up Leadership Roles
HBO Max's current head of original content Sarah Aubrey will now be leading the Max Originals drama slate as part of Warner Bros. Discovery's restructuring, Variety reported. Aubrey will also work in international programming strategy alongside the Warner Bros. Discovery International team, which is led by Gerhard Zeiler.
Meanwhile, executive vice president for programming Joey Chavez will continue to report to Aubrey while serving as lead for Max Originals drama. HBO Max's comedy slate will now report to head of comedy and executive vice president of programming for HBO Amy Gravitt. This also consolidates HBO and Max Original comedy under one team. Suzanna Makkos, who leads HBO Max comedy, will not report to Gravitt.
As for the combined HBO Max/Discovery+ streamer that will launch next summer, Warner Bros. Discovery is still deciding whether to call it "HBO Max" or "Max," with the decision centering on the HBO brand recognition worldwide.
