CNN, under Warner Bros. Discovery, is set to lay off hundreds of employees starting Thursday as part of its plan to focus on a global digital audience, sources close to the matter revealed.
The decision comes as CNN shifts its strategy to adapt to changing viewer habits and reduce production costs.
CNN Layoffs Target Behind-the-Scenes Staff Amid Declining Ratings
The cuts will primarily affect behind-the-scenes workers, while most on-air talent and prominent personalities will remain unaffected due to existing contracts.
According to The Desk, with approximately 3,500 employees globally, the layoffs aim to streamline operations, consolidate teams, and address redundancies.
Some staff in New York and Washington, DC, may be offered opportunities to relocate to Atlanta, where production costs are more manageable.
The layoffs come amidst declining ratings and revenue for CNN. The network has consistently trailed behind Fox News and MSNBC in ratings and has seen its earnings drop by tens of millions of dollars over the past few years.
To offset these challenges, CNN has been restructuring its operations, including introducing a $3.99-per-month digital paywall in October to monetize its online audience.
CNN CEO Reveals $70 Million Investment in Digital Expansion
In a recent town hall meeting, CNN CEO Mark Thompson highlighted that Warner Bros. Discovery has invested over $70 million into the company's digital expansion, CNBC said.
This funding is aimed at strengthening CNN's digital presence and supporting future growth areas, such as data science and product development. Thompson noted that these investments reflect CNN's commitment to adapting to the shifting media landscape.
CNN's decision to implement layoffs after the presidential inauguration aligns with a broader trend in the industry.
NBC News is also planning workforce reductions this week, though the number of affected employees at NBC is expected to be fewer than 50. Both companies have declined to comment on the specifics of the layoffs.
