The studio is having a solid year at movie box offices with summer hits like "Batman Begins" and expectations running high for "Harry Potter and the Goblet of Fire" this fall. Its television production business also is on good footing, with shows like "Without a Trace" drawing viewers.
But the stock price for Warner Bros.' parent, Time Warner Inc has languished around the high teens for years, and investors led by financier Carl Icahn are pressing Time Warner management to take action to boost the shares.
Warner Bros. Entertainment Chairman Barry Meyer issued a statement saying: "As part of our normal budgeting process, we continually review our businesses to find ways to operate more efficiently" and added that Warner Bros. must continue building on its successes "while managing our costs."
A Warner Bros. spokesman was not immediately available to comment. The film and TV studio expects to complete its cost review by year's end.
The Los Angeles Times reported on Tuesday that any cost cuts might include layoffs, but that could not be confirmed. The newspaper also said the studio is reviewing all its expenses from travel and entertainment down to the number of security guards patrolling studio grounds.