What's going on at TCM? Insiders detail the fight to protect the network — and why it matters

We'll always have Paris, but for a time, it seemed as if we might not always have Turner Classic Movies.

Since 1994, TCM has aired films, uncut and commercial-free, 24 hours a day, all enhanced by monthly themed and curated programming, hosted introductions and conclusions (known as outros), conversations with filmmakers and talent, and original content. In its nearly 30 years of existence, the network has expanded beyond its already estimable remit as a cable network-meets-film-school, with fan events including a film festival and cruise.

The brand also plays a key role in global film preservation efforts. Restorations of bigger studio titles are typically done by the studios themselves, but TCM is more often than not the showcase for such work — both on air and at the annual film festival. TCM won a Peabody Award in 2008 for its "commitment to film preservation and restoration."

In 2023 alone, TCM partnered with the Film Foundation and the studio to restore 10 classics for the Warner Bros. 100th anniversary, including 1932's One Way Passage, 1941's The Strawberry Blonde, 1959's Rio Bravo, and 1955's East of Eden, all of which screened at the film festival and aired on the network. Last year, TCM celebrated its expanded partnership with the Film Foundation with the premiere of a 4K restoration of the Elizabeth Taylor/James Dean/Rock Hudson epic Giant at the 2022 festival. (Going even further back, in 2007, TCM tracked down the rights to six "lost" RKO films, including William Powell comedy Double Harness and Ginger Rogers rom-com Rafter Romance, not seen in over 50 years).

But on June 20, all of that seemed to be in peril as news broke that the entire executive leadership team of TCM (most of whom boasted 20-plus years of experience with the network) were being laid off alongside other members of the staff. The latest round of layoffs, which network staff tell EW they were blindsided by, are part of Warner Bros. Discovery's continuing attempts to cut costs across the studio.

The news was met with immediate backlash from viewers and cinephiles, including more high-profile fans of the network such as Ryan Reynolds, Ellen Burstyn, and Mark Hamill. Three cinematic luminaries — Steven Spielberg, Paul Thomas Anderson, and Martin Scorsese — met with WBD CEO David Zaslav to try to staunch the bleeding.

Reports in the press varied as to whether the meeting was called by Zaslav or by the filmmakers themselves. A source tells EW that the Film Foundation — founded in 1990 by Scorsese to protect and preserve cinematic history (Spielberg and Anderson are members of the Board of Directors) — arranged the meeting upon hearing news of the layoffs, but that it was decided internally at the corporate level that it would look best to say Zaslav called the meeting instead.

A spokesperson for Warner Bros. Discovery responded to EW's request for comment on the matter, stating, "There is no confusion as to who initiated the meeting. Despite some unfounded rumors you may have seen, David was a key architect and supporter of this arrangement – he loves TCM as a viewer and believes [Warner Bros. execs] Mike [De Luca], Pam [Abdy] and the directors will further elevate the TCM brand and programming."

Regardless of who initiated it, out of that meeting came news of a reversal of sorts: Creative oversight of TCM moved from the WBD TV networks side to Warner Bros. Pictures bosses De Luca and Abdy, and the three filmmakers-turned-TCM guardians agreed to enter a partnership to help curate the channel. Then, nearly a week later, even better news for TCM lovers came: senior VP of programming and content strategy Charles Tabesh would not be part of the layoffs after all.

"Following the creation of this arrangement, Paul Thomas Anderson, Martin Scorsese, and Steven Spielberg agreed to work with Mike De Luca, Pam Abdy, and Warner Bros. Motion Picture Group to provide guidance on curation and program scheduling for TCM as well as input on the production of the interstitial programming on the network," Warner Bros. Discovery tells EW. "TCM has designated Charles Tabesh to provide dedicated Programming leadership for TCM and will consult with the Directors Group on decisions in selecting Programming leadership for TCM. Charles Tabesh will collaborate on an ongoing basis with the Directors Group and facilitate their provision of the Creative Collaboration Services."

Additionally, a handful of other unnamed staffers were offered their jobs back. Multiple sources inside the network note that the loud public outcry made an immense impact, particularly in the retention of Tabesh.

"He's the heart of TCM," says an insider — one of several who spoke with EW on the condition of anonymity — close to the network. "We were losing the very essence of what TCM is and how we programmed over the past nearly 30 years. If Charlie were to remain gone, we don't have any sense of what the company was going to do with the TCM programming."

On Aug. 1, network host Ben Mankiewicz tweeted that the return of TCM Enterprises vice president Genevieve McGillicuddy was "imminent" and that she was already hard at work on the 2024 TCM Classic Film Festival. "Thanks to everyone - from management to Genevieve to all of you - for making this happen," he added.

If not a full pardon from the WBD gods, the last month and change has been at least a reprieve for the network and its fans, who found themselves reeling at the news that the guts of TCM were being unceremoniously ripped out. "At this point we are cautiously optimistic for the future of TCM. But at the end of the day, it didn't have to be this way," reflects the source.

How We Got Here

Why and how did TCM find itself the victim of cost-cutting measures — and the subsequent eye of a media storm?

Since the Warner Bros. Discovery merger went into effect in April 2022, TCM has been part of studio-wide cutbacks. It has been subject to rolling layoffs since early last fall, including the highly public loss of TCM Underground programmer Millie De Chirico in Dec. 2022.

Reports that the staff was cut from 90 to 20 during this most recent round of layoffs aren't exactly accurate. TCM has always been a small but passionate team. Prior to AT&T's 2018 acquisition of Warner Bros., the network had its most robust staff ever, with a team of approximately 75 people, according to a network insider. AT&T made its own cuts, killing streaming platform Filmstruck. At the time of WBD's takeover, the staff was hovering around 40 people. Now, the insider says that the staff has been further reduced to a lean 20 to 25 individuals in the worst and most devastating layoff they've ever experienced at TCM. WBD declined to comment on the staff size and exact number of people impacted by the layoff, as well as the total number of those invited back.

But why make these cuts at such a scale now? "TCM is a cultural treasure which WBD is fully committed to safeguarding, supporting, and investing in for the future," a spokesperson for the studio previously said in a June 2023 statement about the layoffs. "This year, TCM's content investment has grown by 30 percent and we plan to build on that in future years. That said, TCM is not immune to the very real pressure on the entire linear ecosystem, but we have taken steps to ensure that we stay true to the mission of the network — bringing more titles to the air, driving content investment, and preserving and protecting the culture of cinema. Part of this is the creation of a more sustainable structure behind the screen, one that benefits from the vast resources and promotional engine of WBD's formidable networks group, so TCM is set up for long term success."

Yes, the number of cable subscribers is in freefall and TCM has always been a bit unusual as an ad-free network. But it has also always been a profitable endeavor. Multiple sources estimate that TCM nets around $200 million in cable fees and operates with an annual budget somewhere in the range of $20-40 million. "The ratio is extremely large between how much we bring in versus how little we cost to operate," says the insider. "The profit margins are insane." A spokesperson for WBD would not confirm those numbers, but tells EW that "the TCM budget for 2023 and 2024 will be at least equal to TCM's budget for 2022, including no reduction to the programming budget."

It is unclear whether leaving the programming budget alone was always the plan. Tabesh's return as Senior VP of programming reportedly included stipulations around resources and budget.

The source estimates that TCM's returns are something like 70 percent. So while the entirety of WBD was subject to budget cuts, staffers question how TCM specifically ended up in the financial crosshairs. "What's so perplexing is why something that a) doesn't cost very much and b) consistently performs well would be a target," the source says.

It's even more confusing when you consider that the hosts, the network staff, and even the audience were told repeatedly by David Zaslav and higher-ups at WBD how much they love TCM and how important they believe its mission is. An attitude that continues to be expressed (and, to be fair, one that has been confirmed by the things and staff restored to the network after the filmmakers intervened).

Still, while Hollywood is tightening its belt across studios, many remain skeptical of the motivation for studio-wide budget cuts like those that impacted TCM. Privately, those close to the network point to Zaslav's stock options and complicated salary as a potential cause. It's well chronicled that his salary (as that of many other Hollywood CEOs) is astronomical, clocking in at a reported $246.6 million in 2021 (thanks to a huge stock option) and just over $39 million in 2022 (roughly TCM's entire operating budget).

Following the WBD merger and an assumption of debt, the studio has been on a quest to reduce that debt by increasing free cash flow (a buzzword in executive compensation packages and shareholder earnings calls of late) and maximizing profits — meaning, cuts in spending. In the case of TCM, that includes everything from salaries to in-studio segments with TCM hosts and guests. For example, hosts Dave Karger (also a former EW writer and recent awards correspondent) and Alicia Malone, who were originally slated to receive new sets in 2021 with the network's redesign, now appear on the set built for Mankiewicz, a move TCM proposed as a cost-saving measure.

While it doesn't seem anyone will argue about the network's profits, more in question is cash flow — how much money is moving in and out of a business/the amount a company generates after accounting for all expenditures. Increasing free cash flow enables a company to pay down debt and reduce the ratio of debt to equity, also known as leverage. Thus, if a company's top goal is increasing cash flow, even historically profitable divisions could be subject to cost-cutting. Additionally, Zaslav's salary is, in part, predicated on reducing the debt of WBD as a whole, which stood at a reported $50 billion at the end of 2022.

In March, WBD announced in a filing to the U.S. Securities and Exchange Commission that it would pay out new rewards to Zaslav, as well as other top executives and senior staffers for meeting certain cash flow goals. "The changes to the Warner Bros. Discovery executive compensation program are designed to further incentivize Company employees, including members of its leadership team and others whose efforts are critical to achieving the key near-term financial objectives of increased free cash flow and reduced leverage," said WBD board chairman Samuel A. Di Piazza, Jr. in a prepared statement shared with Variety. "The WBD board is confident that these additional incentives…better position the company to advance core drivers of shareholder value." Meaning, Zaslav and other executives have personal financial incentive to make new cuts that will increase cash flow.

WBD declined to comment on whether the cuts at TCM were a result of the company's efforts to increase cash flow and whether the TCM cuts were in any way tied to the March incentivization initiatives.

TCM was directed to cut around two-thirds of its annual budget earlier this spring (one staffer estimates it was in April, shortly after the network's annual film festival). They add that the senior leadership team was effectively backed into a corner, collectively realizing that the only way to achieve the directed cuts and keep the channel alive was to target their own positions and salaries.

"They had to cut so much money that it was basically, cut all the staff working for them or cut themselves and protect their staff in order to protect the network," says the source. Internally, that has led to a general sense of ill-will toward management among TCM staff. "I'm not an accountant, but it seems like the more [Zaslav] cuts from TCM, the more he gets in his final salary for the end of the year," the source says. "We feel betrayed."

The studio also declined to comment on suppositions as to whether the cuts at TCM might enhance Zaslav's year-end earnings as part of those newly introduced cash flow incentives.

When asked whether the entire TCM staff understands that the leadership team essentially sacrificed themselves, the insider replies, "I don't know if that has occurred to everybody at the network yet. But anybody who gives any measure of thought to it will probably come to that conclusion. I don't think [the former leadership team] would ever want it to be put that way. They don't want it to create a sense of survivor's guilt."

What now?

A lot of TCM's future is still to be determined in the months to come, but with each passing day, it's looking rosier than it did in late June.

An individual with knowledge of the situation notes that it is worth celebrating the fact that Zaslav is listening and has backtracked on some decisions, something few CEOs are wont to do. "He had a lot of people telling him not to do this, and he ignored them," says the individual. "But it's a big deal for someone like him to change his mind. The Jack Warners and Sumner Redstones of the world don't change their minds, especially publicly. He listened to people he should've listened to in the first place."

Multiple sources tell EW that these cuts — not untypically — were made with no plan in place for what to do next. "The filmmakers probably were saying something to Zaslav behind closed doors that was akin to, 'Please do not mess up the programming of TCM,'" notes the insider. "I don't think Zaslav knew what to do. I don't think he had a plan for what was going to happen with the programming of TCM."

Which some sources think is evident given the sudden internal movement of TCM's creative arm to Warner Bros. Pictures top brass De Luca and Abdy — a heartening move, but one that creates significant organizational complications. Half of the staff will now be under De Luca and Abdy's oversight, while other departments, including marketing, editing, and public relations, will remain under another division and be expected to work on multiple networks. "How is that going to work when half of us work under one division of the company and half of us work under another division of the company and we're having to harmonize?" ponders the source. "How do you expect TCM to continue at the level it's operating now if you're reducing our staff and the staff is now having to work on potentially five or six other networks at a time?"

While those inside and outside the network are thrilled with the involvement of Spielberg, Scorsese, and Anderson, and with the return of Tabesh, some think Warner Bros. Discovery is trying to fix something it rather carelessly broke. "We were doing fine," says the source. "We weren't broke, but then you broke it and now you're trying to fix it and it doesn't feel like it's going to be fixed in the same way."

Viewers have noticed that as of July 1, the network is no longer featuring hosted segments (internally referred to as outros) following the conclusion of a film. TCM cut outros as a cost-saving measure to meet budget dictates, and they were not filmed for either July or August — but as part of the events of the last several weeks, the decision was made to restore them. Outros will return for primetime host Mankiewicz in September, with Karger and Malone to follow suit shortly after. (Other hosts Eddie Muller and Jacqueline Stewart film their segments so far in advance that their outros were never impacted).

Many feared that without Tabesh at the helm, TCM would turn into what the TCM Hub is on Max: a non-curated, random assortment of films that places classics like Casablanca and The Wizard of Oz next to Police Academy 3: Back in Training with no context. "Keeping Charlie means that we're still very much alive, and we still have a lot of good work to do," says the insider.

Tabesh's return will also ensure that TCM's role in film restoration work and its relationship with the Film Foundation will continue, which is vital not only for licensing and securing the movies that appear on the network, but for the preservation of film history at large. In 2022, it announced an expanded partnership with the Film Foundation in the form of a multi-year commitment to fund education and restoration of classic films. "The way we help restoration is by licensing films," says a staffer. "If there's a silent film, if there's an independent film somebody's working on — something special and quirky — and there's a place for it on TCM, maybe we can license it and then that money can go toward that restoration. We're part of the restoration chain."

Still, TCM has grown to be a brand far beyond its robust programming and restoration efforts. It's a network uniquely engaged with its fans through events like the annual TCM Cruise and TCM Classic Film Festival, and its community has expanded through Classics on the Big Screen with Fathom Events, the TCM Wine Club, classic movie memorabilia auctions, and a partnership with Running Press that has built a substantial TCM publishing library. The Fathom Events partnership was already dissolved with the December layoffs; the others remain a question mark, and a WBD spokesperson had no comment.

"We don't know yet what's happening to the wine business or the publishing business or our auctions business," says the source, who notes that much of the laid-off team was in charge of those aspects of the business. Only two members of that staff remain. "For two people to be able to handle the festival, the cruise, the wine club, the publishing, the auction business, I don't see how it's possible."

The 2023 cruise, which is slated for Nov. 6-11, is still on, and the staff has been told it will return next year. As part of the news about Tabesh's return, WBD also confirmed that the film festival will be back in 2024 — something the TCM staff only learned from a statement released to the press that did not come from them.

Not like other networks

TCM's biggest challenge is that it doesn't operate like any other television network. (Nor do its fans: Can you think of another network where casual viewers know the names of the senior leadership team?) With the loss of what is estimated to be a combined 100-plus years of institutional knowledge, TCM could have faced a future where those in control did not understand it.

"The higher ups don't understand the model of TCM," says the source, referencing WBD leadership teams and executives outside the network. "They don't understand why we can't be a Food Network. TCM is a different beast. We have a different business model, and we have really good returns."

Adds the insider: "We are commercial-free, and our audiences are so radically different and the way we program is so radically different that the only thing we have in common [with other Warner Bros. Discovery networks] is we occasionally might share an editor. The only other thing is that the word Turner is in our name. That's it."

But this is why staff are optimistic about the involvement of De Luca and Abdy, as well as the trio of filmmakers. Industry brass might scratch their heads at putting people who have never run a TV network in charge, but insiders say this could be better in the long run. "It's one of those things where it's like, 'Let us get under stewards who understand the value of the business and advocate for TCM as a whole and then let us do our jobs,'" the source notes. "We understand the vision, we understand our fans, we understand the value of classic movies. Just let us do our jobs. It's not a bad thing if they don't understand what we do, but understand that we make money and we are a beloved network."

A previous statement from De Luca and Abdy suggests the value of TCM's status amongst fans and filmmakers is secure in their hands. "TCM is a cultural treasure, and we are honored to help steer the future direction of this beloved brand with the partnership of three of the most iconic filmmakers of our time," they said.

Additionally, the individual with close ties to the network points to the move to Warner Bros. Pictures as a sign that Zaslav is listening when the filmmakers and others tell him that TCM needs to work differently than, say, Cartoon Network or TBS. "Being with Mike and Pam instead of the 19 other television channels, it's a sign that when they say they're going to treat us differently, they are treating us differently," says the individual.

Those who do understand what TCM does, at least on a spiritual level, are Spielberg, Scorsese, and Anderson — though the exact scope of their involvement remains to be determined. "They're engaged and enthusiastic, but we don't know the details yet of how it's going to work," says the staffer.

"We have already begun working on ideas with Mike and Pam, both true film enthusiasts who share a passion and reverence for classic cinema that is the hallmark of the TCM community," the filmmakers previously said in a statement. "This unique arrangement, initiated by David Zaslav, reflects his commitment to honoring the TCM legacy while also involving us on curation and programming,"

In some ways, this new partnership is an extension of what the filmmakers have already been doing for TCM. Scorsese has written a monthly column for TCM's Now Playing Guide and digital newsletter for over a decade now (and he was the first recipient of the Robert Osborne award). Spielberg and Anderson have appeared on the network and at the festival multiple times. When TCM was programming its fashion-focused series Follow the Thread in 2022, it was Anderson who cleared up a rights issue that enabled TCM to include his Phantom Thread in its line-up.

"They have been great assets to us in the past," says the source. "They will continue to be great assets to us, maybe in a more prominent way." Anderson has already made moves on behalf of TCM; it was his idea for the network to recently feature director Greta Gerwig to discuss films that inspired Barbie. Anderson himself called Gerwig on a Friday, and that Sunday, the TCM team was at the Barbie junket shooting her segments, which aired the weekend of the film's release.

This type of synergy between old and new is familiar to TCM viewers. Gerwig appeared on the network back in 2019 to discuss Little Women and its legacy. In a recent opinion piece in the New York Times, Maureen Dowd, who cites a close relationship with Zaslav, expressed the CEO's desire to feature more A-list talent, such as George Clooney, on the network going forward.

But that has always been part of TCM's DNA. The Essentials co-hosts have included Alec Baldwin, Tina Fey, Ava DuVernay, and Drew Barrymore. Last fall, Clooney and Julia Roberts appeared to discuss screwball comedies as part of their promotional tour for Ticket to Paradise. When Bruce Springsteen released Western Stars and concurrently made his directorial debut in 2019, he appeared on the network to discuss cinematic influences on his work. There's never been a shortage of movers and shakers lining up to work with TCM.

"Ever since this merger, the command from on-high was: You need to have more A-list talent on the network," says the source. "We thought we were, but sure. So, we had a huge presence at the Academy Nominee luncheon in February and those promos ran as part of 31 Days of Oscar. Spielberg was on in April. There was that whole roster of filmmakers on in April for the WB 100 programming."

Those close to the network say they're at a bit of a loss for how they could possibly feature A-list talent more prominently than they've already done for years, but they're going to try all the same. "How can we make that more visible or do it in a way that at least makes it seem like there's more of it?" says the staffer, envisioning one possible new approach. "Maybe doing more of it if possible. It's too early to say how we can do that."

Frankly, my dear, you should give a damn…

While cultural literacy seems to diminish by the day, TCM is carrying the torch. Unlike so much of the television landscape now, it's not a platform where you (or an algorithm) choose a movie to watch.Their motto is "Where Then Meets Now" and contextualizing classic movies has been their core mission for nearly 30 years.

"TCM has taken an approach to classic movies in a way that we try to make them relevant to a new audience," says the insider. "We're trying to present the films in a way that treats the audience as smart and intelligent. We take very sober and reverential responsibility for these films, no matter what they are. We know that by showing these films, somewhere on a television set, somebody is watching them. That's what TCM is doing in the long run — we are helping to maintain the cultural memory of the greatest art form of the 20th century."

With the help of the three filmmakers, Warner Bros. Pictures executives, and the return of Tabesh and McGillicuddy, the network has avoided a silver nitrate-level of implosion and instead is ready to move on to the next reel. Here's looking at you, TCM.

Disclosure: Lenker previously contributed to TCM's editorial content, writing two blog entries for them in 2015.

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