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Warner Bros., hospital lay off staff

WB says some of the 800 jobs cut will be outsourced, but will allow some workers to stay.

January 22, 2009|By Zain Shauk

BURBANK — Two major employers in the city announced layoffs this week, which could mean hundreds of Burbank employees out of work.

Warner Bros. announced Tuesday it will cut about 800 jobs, the majority of which will come from its Burbank facility, in an effort to trim its operations and face the challenges of a down economy, said Scott Rowe, the company’s senior vice president of corporate communications.

Layoffs at Warner Bros. will impact mostly “back office” employees, like accountants and information technology staff, although some executive and creative positions will be cut as well, officials said.

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“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,” Chairman Barry Meyer and President Alan Horn wrote in a memo sent Tuesday to employees, informing them of the layoffs before managers began meeting with individual employees to begin making cuts about 10 a.m.

Of the 800 jobs the entertainment giant is cutting, 200 are vacant positions. Half of the remaining 600 positions will be outsourced to a third-party company with operations in India, Poland and Burbank.

The outsourced accounting and information technology jobs will be more cost-effective and will allow about 100 Burbank employees to continue working at their current desks, just for another company, Rowe said.

Providence Saint Joseph Medical Center also announced Tuesday that it will close its urgent care center at 3413 Pacific Ave., which houses its occupational health center and diabetic food program. This, along with other changes, will eliminate 94 positions.

The main hospital’s transitional care unit, which helps patients move to convalescent homes, will also be closed and its cardiac rehabilitation program will be restructured to help address the decline in revenues.

Patient care will not be affected, hospital spokeswoman Patricia Aidem said, adding that there are hospitals with these services within four miles.

The hospital was forced to cut services and jobs because there are fewer patients being admitted, Aidem said.

“What’s happening is people aren’t coming in,” Aidem said, explaining that while critical care operations are still being used, admissions for elective surgeries, many of which are the major revenue-generating procedures for the hospital, have dropped dramatically.

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