CNN to cut 200 jobs
The layoffs are part of a restructuring plan initiated by the company’s new CEO, aimed at reversing the economic downturn and improving its ratings.
CNN announced the layoff of 6% of its workforce.
CNN CEO Mark Thompson informed employees of the loss of around 200 jobs in an internal message, where he outlined his plan for "the next phase" of the network. He acknowledged the "plenty of anxiety" within the company during this difficult time.
After announcing layoffs of about 6% of the workforce, Thompson stated that he does not anticipate additional cuts this year. He attributed this to a $70 million investment, which, according to The Hollywood Reporter, came from its parent company, Warner Bros. Discovery.
Over the summer, CNN laid off an additional 100 employees. The network is also considering other changes, including relocating the production of certain programs from New York to Atlanta in an effort to cut costs, according to anonymous sources who spoke to CNBC.
In addition to the layoffs, Thompson announced a series of changes, including the launch of a streaming service and a new TV grid. The London-born executive took the reins of the network following the high-profile dismissal of Chris Licht, who, in less than a year, struggled to manage declining ratings and internal conflicts. Thompson’s mission is to reverse this downward trend.
Economy
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CNN's television ratings have remained stagnant, failing to improve even during the early weeks of the year. Events such as the California fires and the final stages of the Biden administration boosted the performance of competitors like Fox News and MSNBC, according to data from the specialized site Adweek.
Its online performance wasn’t a lifeline either, especially considering that most of its revenue comes from television. According to Comscore data cited by The New York Times, CNN.com experienced its lowest web traffic in two years in December. However, the company claimed that the decline was industry-wide and emphasized that its performance throughout the year had been among the best in comparison to its competitors.
In covering a defamation lawsuit against a veteran, in which CNN was found liable, journalist Jeremy Barr shared insights based on tax documents uncovered by an expert during the case. According to the documents, CNN’s revenue declined year-over-year from 2021 to 2023. Its net worth also dropped significantly, from $4.4 billion in 2021 to $2.3 billion in 2023.
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