Warner Bros. Discovery CEO David Zaslav is cutting costs, including non-essential employee travel, as President Donald Trump’s tariffs begin to impact the entertainment empire.
In a memo to some employees, the company said it would “minimize discretionary spending” in response to “market volatility and reduced consumer confidence,” according to a report from Oliver Darcy. The first actionable item the WBD top-dog enforced was that “effective immediately, all travel that is not business-critical should be cancelled,” including for team meetings, off-sites, events, conferences and office visits.
A WBD spokersperson declined to comment for this story.
Just a few months ago, Zaslav had an optimistic outlook on a Trump presidency, touting it as a “opportunity for consolidation.” The WBD CEO said that consolidation as good for both business and consumers, and spoke warmly of Max’s recent bundling deal with Hulu and Disney+. Instead his own company will tighten its purse strings as a result of the economic instability following Trump’s explosive tariffs as a recession looms.
Other entertainment executives are sounding alarm bells after Trump’s “Liberation Day” tariffs. Disney CEO Bob Iger appeared in ABC News’ editorial meeting Thursday to express his concern about the impact an impending trade war could have on not just his company, but the American economy at large.
Iger’s surprise appearance at the New York City meeting came one day after President Trump signed an executive order imposing a series of tariffs on international trade for over 180 countries and U.S. trade partners.
Also Tuesday, two public figures in China released a list of tariff countermeasures reportedly being considered by government officials, including a possible ban on American-produced films. Trump’s tariffs significantly impacted Chinese imports, with the president placing a minimum 10% tariff on all global imports with significant increases on other countries he believes are dealing unfairly with the U.S. on trade.
He placed an additional 54% tariff on China that will begin just after midnight Tuesday, with a threat from the president to increase that tariff to 104% if China chose to match that tariff rate against the U.S.
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