In a move that could ruffle a few feathers in the Barack Obama administration, American entertainment giant Warner Bros is planning to outsource jobs to India.
It is believed that about 200 positions are to be outsourced to India and Poland by Warner Bros, which also said it would slash about 10 per cent of its 8,000-strong workforce in the coming days.
"While no final decision have been made internationally, the company expects the layoffs, elimination of open positions and outsourcing to affect nearly 800 positions worldwide, or approximately 10 per cent of its 8,000 employees," a Warner Bros official said in an e-mailed statement. About 200 open positions and 300 outsourced jobs would be affected as part of the reduction, while another 300 employees would be laid off, the official said.
While the spokesperson declined to comment on the exact number of jobs being moved to India, sources said that about 300 positions are being outsourced, of which about 200 would go to India and Poland.
Open positions are referred to those which are currently vacant and for which the company was hiring. In January, Warner Bros' Chairman and Chief Executive Barry Meyer, along with President and Chief Operating Officer Alan Horn had said the company would be reducing its staff strength.
"We have examined every aspect of our business in order to cut costs responsibly and to keep staff reductions to a minimum. One way to achieve these objectives is to outsource certain job functions to a third-party company," Meyer and Horn wrote in an e-mail to employees on January 20.
It noted that even though the decision to cut the workforce was "very difficult" to make, the move reflects changes necessary for stability and growth going forward.
"We are sad to announce that based on the global economic situation and current business forecasts, the studio will have to make staff reductions in the coming weeks in order to control costs," the e-mail said.
Meyers and Horn wrote in the e-mail that the changing entertainment business landscape, shifting consumer demand and the overall state of the economy have affected companies around the world, and "Warner Bros is not immune to these factors".