Time Warner Orders Units to Cut Budgets

Time Warner Inc. stepped up its cost-cutting efforts in a memo ordering its far-flung units to shave 3% to 5% off their budgets during the next three years. The media and entertainment giant, which is known for its lavish salaries and perks, also said it’s considering such cutbacks as reducing its fleet of corporate airplanes and spending less on administrative functions, ranging from the annual meeting to copy machines. The New York-based company plans to slash costs without cutting many jobs, the companywide memo said. Time Warner is saddled with almost $18 billion in debt, stemming, in part, from its acquisition of Turner Broadcasting System Inc. and an aggressive expansion of its cable systems.