Warner Bros. Discovery (WBD) has enacted another round of layoffs, this time targeting its traditional cable television operations. As the company’s linear business continues to decline in the face of cord-cutting and shifting viewer habits, sources confirm that fewer than 100 employees have been let go from across WBD’s networks.
Daffy Duck and Porky Pig in the Looney Tunes movie The Day The Earth Blew Up – YouTube, WB Kids
The WBD layoffs impact a broad cross-section of the struggling company’s cable networks, which include TNT, TBS, CNN, Food Network, Discovery, TLC, and Turner Classic Movies. According to a source cited by Variety, no single department or geographic location bore the brunt of the cuts, which were described as “targeted” in nature. The move comes amid ongoing efforts by the company to operate more efficiently as revenue from its legacy media operations continues to fall.
Shrinking Revenue and Ratings Woes
In the first quarter of 2025, Warner Bros. Discovery’s global linear TV networks business posted a 7% decline in revenue, bringing in $4.7 billion. Advertising revenue was hit especially hard, falling 12%, while distribution revenue dropped 9%. The company attributed these losses to a steady decline in network audiences — a trend afflicting much of the cable industry.
As a result, adjusted operating income for WBD’s cable segment fell 15% year-over-year to $1.79 billion.
A screenshot from CNN – YouTube, CNN
These financial pressures have not gone unnoticed by the credit markets. In May, S&P Global Ratings downgraded Warner Bros. Discovery’s credit rating to junk status. The downgrade reflected lowered earnings forecasts for 2025 and 2026, driven primarily by the continued erosion of revenue and cash flow from its cable operations.
Internal Restructuring
In an attempt to stabilize and streamline its sprawling business model, WBD recently completed a major corporate reorganization. The company has now been split into two primary divisions: one encompassing streaming (including HBO) and studio production, and the other focused on the cable TV portfolio.
A screenshot of Bella Ramsey as Ellie in The Last of Us HBO Series – HBO Max
CEO David Zaslav said at the time that the restructuring was meant to “create opportunities as we evaluate all avenues to deliver significant shareholder value.”
The reorganization comes as part of WBD’s broader strategy to navigate a rapidly changing media environment. But despite cost-cutting measures and realignment, the legacy cable model appears to be in steady decline, placing ongoing pressure on profitability.
Executive Pay Under Fire
The layoffs also come on the heels of an embarrassing vote for Warner Bros. Discovery leadership. At the company’s most recent annual stockholders meeting, investors rejected a non-binding advisory measure approving executive compensation packages for 2024.
Superman beaten down in the trailer for James Gunn’s Superman – YouTube, DC
CEO David Zaslav, whose total compensation last year climbed to $51.9 million (a 4.4% increase), was among the executives included in the rejected pay vote. In response, the company’s board said it “takes the results of the annual advisory vote on executive compensation seriously,” and pledged to “continue its regular practice of engaging in constructive dialogue with our shareholders.”
Industry-Wide Cuts
These WBD layoffs follow a similar trend across the media sector. Just this week, Disney enacted a much larger layoff, eliminating several hundred jobs of its own. This impacted employees across its TV, film, and corporate finance units. With linear television revenue drying up across the board, most legacy media giants are shifting focus to streaming and digital ventures while aggressively trimming costs in traditional sectors.
The WB logo before a Looney Tunes cartoon – YouTube, Public Domain Remastered
Though the total number of WBD employees impacted by this latest round of cuts is reportedly under 100, the move reinforces the difficult reality facing traditional cable networks—and the companies still heavily invested in them.
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