Warner Bros. Discovery's CNN to Lay Off 6% of Workforce Amid Digital Shift
CNN, owned by Warner Bros. Discovery, will lay off approximately 6% of its staff as part of a strategic shift towards a more digital-first approach, an internal memo obtained by Reuters confirms.
Traditionally lucrative cable networks have witnessed a decline due to the proliferation of streaming services and widespread cord-cutting.
Warner Bros. Discovery is undergoing a restructuring process and announced plans in December to divide its cable TV operations from its streaming and studio divisions, creating two distinct entities. The Global Linear Networks unit will house the cable TV division, which includes CNN, TNT, and Animal Planet.
With the layoffs, CNN intends to optimize its cable TV offerings and bolster its digital subscription services to meet evolving consumer preferences.
"Our goal is clear: to pivot CNN towards platforms and products that align with audience behavior," said CNN CEO Mark Thompson in an internal memo.
Thompson revealed that CNN is developing a streaming service for news programming mirroring its cable offerings. Additionally, a new lifestyle-focused product is planned for launch this year, the memo states.
As part of the digital transition, CNN aims to create and fill approximately 100 new positions in the upcoming months. Warner Bros. Discovery has invested $70 million to support these initiatives.
In October, CNN implemented a digital paywall, requiring some users to pay a monthly fee of $3.99 for content access. This move seeks to generate additional digital revenue and mitigate the decline in traditional TV viewership.