Time Warner’s new CEO, Jeffrey L. Bewkes, told analysts on a conference call this morning (Wednesday) that he plans to cut over 15 percent of corporate costs across the board.
The move will reduce the company’s run rate by $50 million a year, according to Reuters.
Bewkes confirmed that the media company may separate part of its struggling AOL internet access business from the division’s online advertising business. Such a restructuring could lead to an eventual sale of one of those units, he said (via CNNMoney.com). Time Warner is also looking at making changes in ownership level of Time Warner Cable. Time Warner currently owns an 84 percent stock in the cable business.
Time Warner revenue rose 2 percent to $12.6 billion, which met forecasts.
Bewkes reportedly has plans to lay off 75 people or more today, in a move that should signal to employees and Wall Street that he is serious about cutting costs, writes AdAge. However, he did not mention the layoffs during the conference call.
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