CNN Cuts Workforce, Invests $70M in Digital Transformation
Warner Bros. Discovery (WBD) is laying off approximately 200 CNN staffers, representing 6% of its workforce, as part of a sweeping revamp focusing on digital operations.
The company plans to invest $70 million into the network, launching a direct-to-consumer streaming platform and enhancing its digital ad experiences. CNN will also redesign its website, pivot towards digital video, and introduce a lifestyle-oriented digital product.
CNN CEO Mark Thompson emphasized that job additions are anticipated, and headcount is expected to remain relatively stable. "We aim to align CNN with platforms and products that align with audience shifts, ensuring its future as a global news leader," Thompson stated.
Despite previous attempts with CNN+, the network remains committed to direct-to-consumer streaming. Nielsen data indicates a 75% decline in CNN's prime-time viewership since 2020, prompting WBD to address the dwindling linear business.
The restructuring is part of a broader cost-cutting trend within legacy media due to declining linear operations and debt loads. Speculation surrounds potential strategic options, including asset sales and corporate separations. Bank of America analysts have suggested separating WBD's streaming and studio divisions from its legacy linear TV business.
WBD CEO David Zaslav has previously acknowledged exploring all operational and strategic alternatives.