Warner and High Expectations?

With the economy in such a horrendous downfall, it is hard to believe any organization could have a positive outlook for 2009. Time Warner however recently released the expectations for the 2009 season revealing an expected profit. This however will come in lieu of plenty of job cuts even from Time Warner’s cable division that was the least prone to the economy but still not immune. Cutting nearly three percent of its total work force is the general goal for the upcoming year. The three percent will serve as a total loss of 1,250 jobs. Chief executive of Time Warner Cable Glenn Britt stated “We’ll market our services aggressively, asserting our competitive advantages” who also said the company is cautiously increasing its marketing spend in the current quarter from the previous period. Although Time Warner Cable overall lost money, they actually posted gain in the fourth quarter that just ended by adding 44,000 new digital video subscribers, 113,000 high-speed internet subscribers and 137,000 phone subscribers according to Forbes.com.
With this report, Time Warner better be careful in releasing these reports. Although it is important to have a high confidence level, I believe it is important to let the readers and stakeholders know that these figures are at an “at best” level. In doing this, Time Warner will not let their supporters down if anything were to happen to downgrade these figures.
Adegoke, Yinka. “Time Warner Cable to cut 1,250 Jobs, Sees 2009 Profit.” February 4, 2009. http://www.forbes.com/feeds/reuters/2009/02/04/2009-02-04T223621Z_01_N03548659_RTRIDST_0_TIMEWARNERCABLE-UPDATE-3.html.