Time Warner Inc.'s pay TV channel HBO is reportedly preparing to lay off 7% of its staff in the United States, amounting to around 150 jobs.

Based on data gathered by news outlets, HBO has 2,400 people under its employ in only in the United States. However, it is being reported that Time Warner is currently under pressure in terms of increasing its profits after the company rejected bidding for a takeover.

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The company is said to have refused a bid last summer from Rupert Murdoch's Twenty-First Century Fox after he offered US$85 per share to Time Warner.

Furthermore, Time Warner will also be making cuts at the company's other units including Turner Broadcasting, which is a cable network, and its movie studio, Warner Bros.

Last October 15, the chief executive of HBO, Richard Plepler, is said to have written a memo for the staff, saying that resources are being shifted towards 'areas with the greatest potential' whenever it is necessary in order to allow room for revenue growth and the enhancement of their brand.

He also wrote, "We have a long history of tightly managing our overhead so that we're able to maximize investment in the creation, distribution and marketing of content."

On the other hand, last October 15, Wednesday, HBO has also announced that it will be launching an independent online video streaming service this coming 2015. They've made this announcement to investors during a Time Warner presentation, saying that, through the hit shows they've made, they aim to reach people who are not subscribed to cable TV.

According to media reports, last year alone, HBO was able to make almost $5 billion in revenue and another US$1.7 billion in operating income alone.

Variety is the first media outlet to report the news regarding HBO's plan to reduce jobs within the company.

TagsHBO, time warner