Warner Bros. Discovery Inc.
said it expected to incur as much as $4.3 billion in pretax restructuring charges through 2024, the result of a cost-cutting effort following the combination earlier this year of Discovery Inc. and AT&T Inc.’s
The majority of the charges — between $2 billion and $2.5 billion — are tied to restructuring the company’s content operations, including writing down the value of some content and killing off projects that were in development, Warner Bros. Discovery said in a securities filing Monday. The company is expected to report third-quarter earnings Nov. 3.
New management at the company is trying to make good on a promise to Wall Street to find $3 billion in cost-savings through the combination of Discovery with WarnerMedia. The company is also wrestling with a heavy debt load. At the end of the second quarter, the company had debt of $53 billion.
Among the projects that have been scratched was a nearly completed “Batgirl” movie being made for HBO Max. A project from producer J.J. Abrams called “Demimonde” was also cut and is now being shopped elsewhere.
There have been significant layoffs since the deal closed. Earlier this month, about 26% of all positions at Warner Bros. Television were eliminated in cost-cutting moves. Cuts have also been made at HBO and at the Warner and Discovery cable networks including TBS, TNT and CNN.
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