CNN Poised to Lay Off Hundreds Amid Digital Expansion
CNN, which currently employs approximately 3,500 staff, is reportedly poised to lay off hundreds of employees this week in an effort to strengthen its digital audience. The layoffs, anticipated to be announced on Thursday, are said to target production cost reduction and a shift towards digital subscription products.
Media organizations, including CNN, have faced challenges in audience and revenue growth due to the decline in cable news viewership. As a result, many have sought to diversify their offerings. According to a source who spoke to CNBC, some CNN programs based in New York or Washington DC may be relocated to Atlanta for cost savings.
The cuts are not expected to affect the network's most prominent figures. CNN CEO Mark Thompson recently announced an investment of over $70 million from parent company Warner Bros. Discovery for digital employees. This funding will be allocated towards hiring in areas such as data science and product development.
The move follows CNN's launch of a digital paywall, charging some users $3.99 per month for access. The network has faced legal challenges this year, including a $5 million defamation verdict against it in favor of a US Navy veteran.
CNN subsequently settled with Zachary Young for an undisclosed amount, avoiding a second phase of the trial that could have resulted in punitive damages. "We are proud of our journalists and remain fully committed to strong, fearless, and fair-minded reporting," CNN stated.
Prior to 2022, CNN had not conducted significant layoffs. However, the company axed 100 jobs six months ago as part of its digital strategy. Thompson emphasized a digital plan that aims to "regain a leadership position in the news experiences of the future."
Other networks, such as NBC News, are also rumored to be making cuts this week, with insiders reporting layoffs of under 50 staff. The Telegraph has contacted representatives of CNN and NBC News for comment.