As part of a plan to reduce its costs, Turner Broadcasting has moved to cut about $15 million from its annual operating budget, which covers programming, advertising, and the salaries of about 100 employees.
In response, Turner said in a statement that its executives will be paid at “full or semi-full” rates over the next several months, which the company describes as “a substantial reduction in compensation.”
“While we appreciate Turner’s efforts to reduce our costs and to help our shareholders, we are focused on meeting our full and semi-syndicated TV programming needs,” Turner said.
“While we will continue to pursue ways to grow and improve our business, our objective is to provide the best possible service to our customers and viewers.”
Turner also said it has increased its financial flexibility.
“We will continue investing in our core business, including in our cable business, to help us continue to grow our business,” the statement read.
“We are excited about the opportunities this has opened up and look forward to continued improvement and growth in our TV, Internet, and broadcast businesses.”
In January, Turner announced it would take a $1 billion writedown to reduce the amount of debt it owes to its shareholders.
The $15-million-a-year pay cut is part of an overall restructuring plan for Turner that the company is doing to save money.
As part of the plan, Turner is going to take a series of steps to reduce debt, including cutting spending by about $5 billion.
Earlier this month, Turner agreed to pay $5.4 billion in a $8.5 billion debt restructuring, which includes $2 billion to eliminate the debt that it owed to the U.S. government and other investors.