KUALA LUMPUR – CNN is laying off approximately 200 employees as part of a restructuring initiative aimed at shifting its focus towards a more digital-centric future.
According to CNN’s CEO, Mark Thompson, the job cuts primarily affect its television operations. However, he assured staff that the roles will be replaced with hires aligned with the company’s digital ambitions, which include new subscription-based services.
Warner Bros. Discovery, CNN’s parent company, is investing $70 mil (RM311mil) to support the transition, the Associated Press reported.
“Our objective is a simple one: to shift CNN’s gravity towards the platforms and products where the audience themselves are shifting,” Thompson said in a memo to staff.
Thompson, who joined CNN in 2023, has been advocating for a stronger digital presence since taking the helm. As part of these efforts, the company plans to launch a streaming service allowing subscribers to access news content across various devices.
The new service aims to address challenges with traditional programming schedules and cater to a changing audience that increasingly consumes news through mobile devices and apps.
CNN also intends to launch a subscription product later this year centred on lifestyle content, including food and fitness.
While details remain scarce, Thompson noted these ventures are part of the network’s strategy to remain relevant in the evolving media landscape.
The layoffs, which amount to about six percent of CNN’s workforce, come as the network continues to struggle with declining ratings. Under Thompson’s leadership, CNN has experienced a 20% drop in viewership, particularly during primetime. Fox News and MSNBC have surpassed CNN, with Fox’s primetime anchors averaging 2.8 million viewers compared to CNN’s 800,000.
In addition to the digital overhaul, CNN is revamping its television programming. Wolf Blitzer, currently hosting The Situation Room, will transition to a morning show alongside Pamela Brown. Meanwhile, Jim Acosta’s 10 am show will be replaced, though the network is reportedly in discussions with Acosta about a new role.
Thompson acknowledged the challenges faced by the network, describing the shift to digital as “an existential question.”
“If we do not follow the audiences to the new platforms with real conviction and scale, our future prospects will not be good.”
Despite the setbacks, Thompson emphasised CNN’s mission to remain a trusted source of news for millions of people.
“In the end, this is about CNN being – as it has been in its history – an indispensable way in which many, many millions of people get their news,” he said.
Thompson also urged staff to adapt to the new digital-first strategy, which includes producing more short-form videos for platforms like Instagram.
The network plans to create 50 to 100 vertical videos daily, appealing to younger audiences who prefer news on their phones.
The restructuring comes on the heels of previous setbacks, including the failure of CNN+ in early 2022.
The short-lived streaming platform was replaced by CNN Max, which continues to offer limited access to Warner Bros. Discovery’s broader portfolio, including HBO and Food Network.
CNN has faced scrutiny over its handling of prominent anchors and pay structures. Reports indicate that Jake Tapper and Blitzer were denied raises, while Chris Wallace, who reportedly earned $7 mil (RM31mil) annually, recently left the network amid discussions of potential pay cuts. – January 23, 2025