The financial crunch has reached Warner Brothers Entertainment which will shed 10% of all employees. Most of the 800 job cuts will come from information technology and support services. In a letter to Warner Bros staff, Barry Meyer, the studio’s chairman, said the cuts reflected "changes necessary for stability and growth going forward".
"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," he said. An unspecified number of jobs are planned to move to India and Poland.
The studio has also sharply cut the number of movies it releases. From a peak of more than 40 movies a year it dropped to about 25 in 2008.