Warner Bros. Discovery (WBD) has made targeted job cuts in its cable television division, reflecting the continued decline of the traditional TV business amid falling viewership and shrinking ad revenue. A source familiar with the matter stated that the cuts were spread across the company’s portfolio and not concentrated in any specific network or location. WBD’s cable TV assets include TNT, TBS, CNN, Food Network, Discovery, TLC, Cartoon Network, and Turner Classic Movies.
These cuts are part of a broader cost-saving strategy as the company navigates industry-wide challenges, including cord-cutting and a shift toward streaming content.
Warner Bros. Discovery isn’t alone in taking such measures. Earlier this week, Disney also laid off several hundred employees across its TV, film, and finance departments. The trend highlights the increasing pressure on legacy media companies to reduce operational costs and adapt to changing consumer habits.
In the first quarter of 2025, Warner Bros. Discovery reported a 7% drop in global linear TV revenue, bringing in $4.7 billion. Advertising revenue declined by 12%, and distribution revenue fell by 9%. According to the company, these figures reflect decreasing audience numbers across its cable properties.
Furthermore, the company’s adjusted operating income for the cable group dropped 15% year over year, totaling $1.79 billion.
These financial setbacks have not gone unnoticed. In April, S&P Global Ratings downgraded WBD’s credit rating to junk status, citing “continued revenue and cash flow declines at its linear TV operations” and a lowered earnings forecast for 2025 and 2026.
In response to the ongoing challenges, Warner Bros. Discovery recently completed a major internal restructuring. The company now operates under two divisions:
- Streaming and Studios – which includes the Max streaming platform and HBO.
- Linear TV Networks – which houses the cable channels.
This split, first announced by CEO David Zaslav in December 2024, aims to “create opportunities as we evaluate all avenues to deliver significant shareholder value,” according to Zaslav.
In a further sign of its financial struggles, the company took a $9.1 billion charge against earnings in Q2 2024. This charge was related to a devaluation of its television networks — a clear indication of how much the value of traditional TV has fallen in the eyes of investors and executives alike.
At Warner Bros. Discovery’s most recent annual shareholders meeting, investors voted down a non-binding advisory proposal to approve 2024 executive pay packages. This included CEO David Zaslav’s compensation, which rose by 4.4% to $51.9 million.
Following the vote, the board acknowledged shareholder concerns. “The board takes the results of the annual advisory vote on executive compensation seriously,” the company said in a statement. The board’s compensation committee also stated that it “looks forward to continuing its regular practice of engaging in constructive dialogue with our shareholders.”
As Warner Bros. Discovery continues to face pressure from declining cable TV revenue, rising executive compensation, and shareholder pushback, its future hinges on balancing cost cuts with investment in streaming and original content. While the linear TV business still brings in billions in revenue, its long-term viability remains uncertain amid digital disruption.