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Warner Bros to cut 800 jobs US-based studio Warner Bros is off-loading 10% of its workforce worldwide - around 800 staff - as the economic downturn continues to bite. Employees were told of the proposed belt-tightening measures in a memo from studio chairman Barry Meyer on Tuesday morning, according to reports. "Based on the global economic situation and current business forecasts, the studio will have to make staff reductions in the coming weeks in order to control costs," he said. He added the cuts reflected "changes necessary for stability and growth going forward." The cuts make Warners the latest Hollywood major to make cost-savings amid predictions of a prolonged recession this year. Last year, Viacom, CBS, NBC Universal and Lionsgate all made significant staff reductions. The entertainment industry in the past has been seen as relatively immune to recessionary pressures. Indeed a report out today from Deloitte suggests TV viewing in the UK rose in the second half of 2008 and the trend is set to continue through this year. However, the fall in advertising spend and the slump in consumer spending is hitting DVD sales - an important revenue stream for the industry - has had an impact. "The changing entertainment business landscape, shifting consumer demand and the overall state of the economy have affected companies around the world, and Warner Bros is not immune to these factors," said Meyers. Most of the cuts are believed to be coming from information technology and support services. With most of the jobs being outsourced. The studio also plans to move an unspecified number of jobs to India and Poland. The cuts had been rumoured for several months, and come after a year of belt-tightening measures at the company. New Line Cinema, Warners' sister company, was merged with the studio, while niche labels Warner Independent Pictures and Picturehouse were closed. Martin Buxton 21 Jan 2009 © C21 Media 2009 
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