In a move described by senior executives as an effort to modernize their business model, CNN and NBC are set to implement layoffs affecting hundreds of employees, although these reductions will not currently impact on-air talent. CNN’s CEO, Mark Thompson, confirmed the job cuts in a memo to staff on Thursday, corroborating a report from CNBC regarding the forthcoming layoffs. In his communication, Thompson indicated that CNN does not foresee a substantial reduction in overall staff numbers this year, as the organization aims to invest $70 million in new digital initiatives.
Thompson expressed his awareness of the significant personal impact that job losses can have on affected individuals, stating, “The process of change is essential if we’re to thrive in the future, but I both acknowledge and regret its very real human consequences.” The cable network is planning to reduce its workforce by approximately 6 percent, translating to around 210 positions.
These layoffs coincide with CNN’s restructuring of its linear television programming and its commitment to enhancing digital subscription services. The intended cuts are aimed at lowering production costs and optimizing operations, according to sources familiar with the matter, who requested anonymity to discuss internal strategies. Some productions based in New York or Washington may be shifted to Atlanta, where expenses are lower, the sources noted.
The layoffs are not anticipated to affect CNN’s prominent on-air talent, who are secured by contracts, according to the sources. Currently, CNN employs roughly 3,500 individuals worldwide, as reported by CNBC.
Additionally, CNN has outlined several new initiatives in the staff memo. The company is working on a novel approach for digital subscribers to access CNN content outside of CNN Max, which is part of Warner Bros. Discovery’s broader Max streaming platform.
Thompson indicated that further details regarding content will be disclosed in the upcoming months. The network had previously aimed to launch its own streaming service, CNN+, in 2022; however, the plans have since evolved.
In October, CNN implemented a digital paywall, charging regular users $3.99 per month. The organization aims to generate $1 billion in revenue by the year 2030. To enhance its digital footprint, CNN intends to recruit at least 100 new employees in the upcoming months. The company plans to allocate resources towards product development and technology, as well as invest in high-quality journalism and storytelling. A portion of this investment will be directed towards the creation of a lifestyle-oriented digital product currently in development.
Additionally, The New York Post reported that NBC News, which is owned by Comcast, is also expected to announce job cuts later this week. Although the exact number of layoffs remains unspecified, it is anticipated that they will be fewer than 50.
Earlier this month, The Washington Post, owned by Amazon founder Jeff Bezos, disclosed plans to lay off approximately 4% of its workforce, which equates to fewer than 100 employees. This move is part of the company’s strategy to cut costs amid rising financial losses, as further noted by The Post.
In November, the Associated Press announced it would reduce its workforce by about 8% as part of its efforts to modernize operations and products. The Post also mentioned that news of CNN’s layoffs followed a warning from Thompson, who advised staff against expressing any personal outrage during the inauguration.
Thompson, a former executive at the BBC and the New York Times, conducted a virtual editorial meeting on Sunday that included prominent figures such as Jake Tapper and Anderson Cooper. The purpose of the meeting was to discuss CNN’s coverage of the inaugural ceremonies scheduled for the following day in Washington, DC, as reported in the Status newsletter. During this meeting, Thompson emphasized that he did not wish for the coverage to revisit past controversies, referencing CNN’s historically contentious relationship with Trump, according to Status reporter Oliver Darcy.
