Time Warner Inc (NYSE:TWX) To Offer Buyouts to 600 of Its Employees- Restructuring Plan Initiated

According to the latest news, Time Warner Inc (NYSE:TWX) is planning on offering buyouts to around 500-600 of the company’s employees. The company is expected to execute this plan in the next couple of months, and the employees that will be offered buyouts will be from the Turner Broadcasting Division.

Time Warner Inc (NYSE:TWX) is confident that it will perform positively even in the standalone times; the company has planned its restructure strategy to improve its growth and numbers.

According to the people familiar with the matter, the company sent a memo to its employees stating that the main focus of the company will be on cost cutting strategies. The company also plans to invest more in its core areas in order to improve the profitability.

Sources have it that in addition to the buyout that the company plans to offer to its employees, Time Warner Inc (NYSE:TWX) is also planning on some more layoffs.

The company is focusing more on the restructuring of its Turner Broadcasting Division, for the revenues derived from TBD have fallen considerably over the last couple of quarters due to the decreased ratings, severe competition and poor advertising trends.

The company announced its initiative of streamlining, commonly known as the Turner 2020, back in June 2014; and all the latest efforts by the company are measures to launch this initiative properly and successfully.

The Turner 2020 initiative is a plan designed by the company to target the struggling segments of its divisions and make them the competent ones by improving the qualities of the programs broadcasted by these segments as well as content monetization.

Talking about the layoff offers, the employees that have ages of 55 year+ together with an experience of at least 10 years in the Time Warner Inc (NYSE:TWX) will be offered buyouts. The buyouts will cover several divisions, including Cartoon Network, TBS, TNT, TruTV and CNN.

According to the market analysts, the layoffs were unavoidable, and a number of company’s employees were expecting the company to announce the layoff plan in the year 2014. Jeff Zucker, the chief at CNN, also reiterated this point during a meeting with the employees last week.

Turner division has almost 13,000 employees.

The company had been planning its restructuring strategies for quite some time now, in order to improve its revenues and cut down the costs. The company recently spun off its magazine segment and made it into a whole new publicly traded corporation.

Time Warner Inc (NYSE:TWX) currently has a #3 Zacks rank on its stocks with a consensus rating of ‘Hold’.

The company, on the last trading day, August 27, 2014, started its stocks at a price of $76.88 and closed at a price of $76.85, after hitting the highest figures of $77.26. The company has a total market capitalization of $65.81 billion with a price to earnings ratio of 16.62. As far as the dividend yield of the company’s stocks is concerned, the numbers are recorded to be around 1.65 percent.