AT&T CFO John Stephens said Tuesday that the layoffs currently affecting WarnerMedia should be viewed as a "refocusing" of the company -- and not a "course correction" after the launch of HBO Max in May.
"This is a transformation of making things better," Stephens said during an online appearance at the Oppenheimer Technology, Internet & Communications Conference. "Not because we needed to adjust anything but rather because we’re striving to get even better than the launch was, to get even better than WarnerMedia has traditionally performed."
Stephens went on to explain that the reorganization is part of the company's goal to be "super-hyper-focused" on direct-to-consumer streaming, noting that the HBO Max launch was "really successful." He also cited a July report that the streaming service had attracted 4.1 million subscribers, a combination of new consumers and existing HBO subscribers who decided to activate their access.
"[The streaming effort is] going well and we’re really excited about it going forward," he continued. "Not only for HBO or for HBO Max, not only for our digital platforms, but quite frankly for what it will do for our ability to grow fiber, grow wireless, take our existing wireless customers up to the elite packages that include HBO Max.”
As part of the restructuring, entertainment chairman Bob Greenblatt and HBO Max chief content officer Kevin Reilly exited their roles last week. A larger round of layoffs was announced on Monday and included 600 staffers, with a heavy focus on Warner Bros.
When asked about the company's net debt, Stephens confirmed, "We're going to continue to pay down debt." AT&T reported a net debt of $180 billion at the start of 2019, which has dropped to $153 billion as of June 30. "The issue is really the quantity of debt. 150 is a large number," Stephens added. "Getting that down into a more comfortable number, where the marketplace is more comfortable [is a priority]."
HBO Max currently offers content from Warner Bros., DC, Sesame Street Workshop, Turner Classic Movies, Studio Ghibli, Cartoon Network, Adult Swim, Crunchyroll and Looney Tunes.
(via Deadline)