Movies

CNN hit with significant layoffs as network sets a plan for a digital future

BBG News

CNN is reducing its workforce by 6%, as they strive to transform themselves for the digital age of television.

In response to a mass departure of viewers and a continuous drop in traditional pay TV subscribers, the news channel owned by Warner Bros. Discovery announced on Thursday that they plan to reduce their workforce by approximately 200 employees from their television sector, while simultaneously boosting their digital division with investments.

In simpler terms, CNN’s Chairman Mark Thompson informed staff in a memo that the adjustments being made today are part of our continuous adaptation to significant transformations in how American audiences acquire news.

Thompson stated that the parent company, Warner Bros. Discovery, intends to invest a total of $70 million towards the endeavor for creating new digital services based on subscriptions.

One potential rephrasing could be: “Our plans for transformation involve creating a consumer-direct CNN service. So far, we’ve found significant interest in this idea, not only within the U.S., but globally as well.

It was generally anticipated because CNN has experienced a decrease in viewership since 2021, and the ongoing trend of ‘cord-cutting’ has been reducing the income derived from traditional pay-TV subscriptions.

In a recent defamation case where CNN initially faced legal action but ultimately reached a settlement, they provided evidence of their finances, revealing a 20% decrease in revenue from 2021 to 2023.

According to Thompson, the aim is to produce a digital revenue of one billion dollars by the year 2030. Furthermore, he mentioned that as staff are hired for the digital sector, this should compensate for the workforce reduction in the television division.

Hollywood Inc.

Previously, a journalist who covered the White House was barred from the briefing room during the Trump presidency. Now, CNN is considering shifting his show to late-night hours.

The action taken by the company is their reaction to the trend among younger audiences, who are abandoning traditional television in favor of streaming videos and online sources for news content.

Since its acquisition by Warner Bros. Discovery in 2022, CNN has experienced multiple rounds of job cuts.

It’s not just CNN that’s experiencing financial strains due to shifts in the television industry. Both ABC News and NBC News are reportedly planning staff reductions, though they won’t likely match the extent of the workforce cuts at CNN.

Read More

2025-01-23 18:01

Previous post Oscars 2025: The Full List of Nominees
Next post Oscars 2025: Top British Stars Dominate Nominations, But One Favorite Misses Out