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February, 5th 2008

NEW YORK (AdAge.com) -- In one of his first moves as Time Warner CEO, Jeffrey L. Bewkes plans to lay off 75 or more people tomorrow, primarily from the media conglomerate's corporate offices, signaling to employees and Wall Street that a new appraisal of the company is under way.

Jeff Bewkes
Photo Credit: AP

The corporate unit's headcount is roughly 600 or 700 jobs. Earlier plans had envisioned layoffs closer to 200 in number.

The layoffs are approaching at a time of heightened attention to the Time Warner's performance and strategy. Tomorrow morning the company will report its first financial results, covering 2007 and the fourth quarter, since Mr. Bewkes succeed Richard D. Parsons on Jan. 1.

Analysts on the conference call are likely to press the new CEO about his strategy for the AOL division in the wake of Microsoft's blockbuster $44.6 billion bid for Yahoo last week. But those analysts have also called for him to seriously consider reducing Time Warner's size and scope, arguing that the stock has been weighed down by a "conglomerate discount."

A Time Warner spokesman declined to comment.
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source: adage.com
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