Discovery Communication said it plans to reduce costs and has notified some employees that they are eligible for voluntary buyouts.
In an SEC filing, the Discovery said the cost cutting plan will include personnel adjustments, restructurings and budget re-allocations.
Discovery said it wants” to more efficiently operate in a leaner and more directed cost structure and invest in growth initiatives, including digital services and content creation.”
The personnel moves are expected to cost Discovery between $40 and $60 million, the company said in its filing.
“The company also expects to take additional actions to reduce its non-personnel costs and is continuing to evaluate its expense based,” the company said.
In 2015, Discovery had net income of $1.04 billion, down from $1.14 billion, as revenues rose 6% to $3.13 billio. Its U.S. networks had a 57% profit margin. The company bought $375 million of its own stock.
Discovery CEO David Zaslav received $32.4 million in total compensation in 2015. The year before he got a package worth $156.1 million, including stock awards that get paid over 10 years as part of a contract extension.
The company reports first quarter earnings Thursday morning, and executives will probably discuss the cost-savings plan.
The television industry's top news stories, analysis and blogs of the day.
Thank you for signing up to Broadcasting & Cable. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.