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Discovery set for staff cuts

David Zaslav

David Zaslav

Factual giant Discovery Communications is planning a restructure that will include staff cuts in the third quarter of this year as it attempts to rein in costs.

A legal filing ahead of the release of Discovery’s first-quarter accounts this morning, and an internal memo to staff from CEO David Zaslav, gave sketchy details of the proposal.

Lay-offs, as well as restructuring and “budget reallocations” are expected to cost the company between US$40m and US$60m but lead to savings in the long run.

wolf_creekZaslav said the moves would enable the company to invest in new areas of growth, adding: “There is no doubt that change can be challenging and difficult. This process, while necessary, is a tough one. In making these hard decisions, we are positioning Discovery for many more years of success and growth as a leader in global entertainment.”

This morning’s first-quarter accounts showed revenues up 2% year-on-year to US$1.56bn and adjusted OIBDA up 2% to US$5.77bn.

Revenues in the company’s international division, which have been close to overtaking those in the US recently, declined this time by 3% to US$7.11bn. Discovery put this down to currency differences and lower revenues from Education and other divisions.

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