Recessionary pressures and heightened competition from telephone companies are prompting Time Warner Cable to push through restructuring initiatives that will impact dozens of its Capital Region employees.
After earlier this month posting weak advertising growth for 2008, Time Warner is preparing to relocate 30 back office jobs from its media sales operation on Century Hill Road in Latham to a regional advertising center in Charlotte, N.C.
During the third quarter, the New York-based Time Warner plans to complete the relocation process, which has been in the works for the past six months. The move will leave 100 employees in the Latham media sales unit, said company spokesman Peter Taubkin.
“Every one of those employees have the opportunity to relocate,” Taubkin said of the 30 back office workers.
Despite receiving a boost from political advertising during the second half of last year, the company experience a lackluster 4 percent gain in total advertising revenues to $244 million for all of 2008. Time Warner, the nation’s second-largest cable operator, posted a net loss of $7.3 billion for 2008, compared to a $1.1 billion net income for the previous year.
“The slower [advertising] growth weighed on the company’s overall profitability because advertising tends to be a high market business,” Time Warner President and Chief Executive Officer Glenn Britt said in a Feb. 4 conference call with analysts.
Britt said Time Warner is facing a “heightened need for disciplined management of costs.” Reflecting that need, the company with 14.6 million customers said it will eliminate 1,250 jobs to save $90 million annually.
Taubkin said those cuts will affect less than 1 percent of Time Warner’s 1,100 employees in the area. The cable operator has a regional headquarters in Schenectady, where it employs 400.