WBD investors scrutinize Zaslav’s paycheck; Disney does more layoffs

Warner Bros. Discovery CEO David Zaslav is facing heat from investors as 60% of shareholders vote against his $52 million pay package for 2024. What prompted the rare public backlash? Plus, what’s behind Disney’s latest wave of layoffs? Kim Masters and Matt Belloni are on it.

Money talks? A recent WBD shareholders vote sends a clear message of frustration as the company’s stock slides and layoffs ripple through the studio. “Shareholders have lost about 60% of the value of the company since it went public and debuted about three years ago,” says Belloni. “So David Zaslav continues to enrich himself while the shareholders of the company, ostensibly his boss[es], are not benefiting from this.”

Let it go? Disney announced another round of layoffs this week, a move which affects hundreds of employees across its film, TV, marketing, publicity, and corporate operations. The layoffs come amidst a company-wide reduction in content and restructuring of its entertainment business model. “This is the latest move to bring down the workforce in response to making less content,” explains Belloni. “Bob Iger has been very clear that Disney is not making as much film and television programming as they did during the pandemic and they feel that the company should reflect that reduced output.”

Stream(ing)-liner? Disney is looking to restructure its employees across cable and streaming, with the possibility of Hulu and other company assets living together under one roof. “They need all those people,” Belloni notes. “Slowly but surely, they are consolidating these people for the future where there will eventually be one Disney streaming brand, Disney+ with hubs underneath it, and a linear television business that will either be spun off, or will be slowly atrophied into nothing.”