Warner Bros. outsourcing jobs to India and Poland

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It’s no secret that Warner Bros. is poised to slash dozens if not hundreds of jobs at its Burbank headquarters in the first quarter. The Time Warner Inc. studio will join a train of other entertainment companies including NBC/Universal and Viacom Inc. to cut costs across their operations in the face of tough industry economics and the deepening recession.

Although the number and timing of layoffs at Warner is still being determined, it will definitely impact scores of ‘back office’ workers in management information systems, finance and accounting. Many of those jobs will be outsourced to India and Poland, according to people familiar with the situation. Once Warner finalizes its plans, it will conduct training sessions with the outsource workers at its Burbank lot as well as at its various offices around the world.

Those who work in other divisions at the studio will also be affected, but at this point, it is unclear to what extent.

All department heads at Warner have been asked to come up with a specific plan to reduce costs in their respective divisions, which will include cutting travel and entertainment expenses, trimming marketing budgets and eliminating jobs. In 2005, Warner went through a similar top-to-bottom cost-cutting exercise to help shore up its bottom line in the face of declining DVD sales, flat movie ticket revenues and a less robust TV syndication market. That belt-tightening resulted in about 400 job losses -- more than 5% of the studio’s workforce -- around the world, including about 300 in Burbank. Warner Bros. employs around 8,000 worldwide.

Warner spokeswoman Sue Fleishman declined to offer any details about the current situations, saying ‘no decisions have been made.’

-- Claudia Eller