CNN Cuts Workforce Amid Digital Transformation
CNN is axing 6% of its staff, approximately 200 employees, as the cable news network pivots towards a digital-first approach. Warner Bros. Discovery (WBD), CNN's parent company, intends to invest $70 million in the network's overhaul, which includes a direct-to-consumer streaming service and enhanced digital ad experiences.
CNN aims to revamp its website, amplify digital video content, and launch a novel lifestyle-focused digital product. CEO Mark Thompson emphasized that despite the layoffs, the network anticipates minimal staff reduction this year and plans to hire new personnel to support its digital transformation.
"We are shifting CNN's focus towards platforms and products where the audience is moving," said Thompson. "Our goal is to secure CNN's position as a world-renowned news organization."
After the premature shutdown of CNN+ in 2022, the network has faced challenges. Nielsen data indicates a 75% decline in prime-time viewership since 2020. Both WBD and Paramount Global (PARA) reported billion-dollar losses in their cable business values.
Industry pressures, including declining linear viewership and debt burden, have led legacy media companies to implement cost-cutting measures, resulting in layoffs and restructuring across the ecosystem. Rumors of potential mergers and acquisitions involving Warner Bros. have resurfaced, especially after the end of its merger lockup period.
Bank of America analysts suggest strategic options such as separating the company's streaming and studio divisions from its traditional linear TV operations. WBD CEO David Zaslav has stated that the company is evaluating "all options operationally and strategically."