CNN, one of the world's most recognized news organizations, is laying off 6% of its workforce-approximately 200 employees-as part of a significant restructuring aimed at transforming the network into a digital-first operation. The move, announced on Thursday, is part of a $70 million investment by parent company Warner Bros. Discovery (WBD) to modernize CNN's offerings and position it for a future where audiences increasingly consume news online.
"Our objective is a simple one: to shift CNN's gravity towards the platforms and products where the audience themselves are shifting and, by doing that, to secure CNN's future as one of the world's greatest news organizations," CEO Mark Thompson said in a memo to staff.
The layoffs come as CNN grapples with declining ratings and increasing competition in the media landscape. According to Nielsen data, CNN averaged 578,000 prime-time viewers in the final quarter of 2023, a sharp 75% drop from its peak in late 2020. The network, like many legacy media outlets, has struggled to maintain relevance as traditional cable viewership declines.
The $70 million initiative will include a complete overhaul of CNN's digital strategy, featuring the launch of new subscription products, a lifestyle-oriented digital platform, and a revamped website. The network is also pivoting to emphasize digital video, offering consumers the ability to stream news programming across multiple devices.
Thompson assured employees that while layoffs are unavoidable in the short term, the network anticipates offsetting the job cuts with new digital-focused hires. "Jobs will be added as part of the effort, and despite the job cuts, the network doesn't expect headcount to decline much this year," he said.
The move to prioritize digital comes after CNN's ill-fated attempt with CNN+, a direct-to-consumer streaming platform that launched and shuttered in 2022 within weeks of its debut. The failure of CNN+ underscored the challenges of transitioning from a traditional cable model to a subscription-based digital service.
Warner Bros. Discovery CEO David Zaslav has been candid about the challenges facing CNN and the broader cable television industry. "Am I disappointed that the trends in the linear business haven't been a little better? Yes," Zaslav said last summer. "It hasn't really happened. It is what it is. We're managing this as best we can."
CNN's ratings decline has been part of a broader trend in legacy media. Industry giants like Paramount Global and Warner Bros. Discovery collectively wrote down $15 billion in their cable businesses in 2023. Mounting debt, shrinking ad revenue, and rising production costs have forced companies to explore dramatic cost-cutting measures, including layoffs and strategic restructuring.
Bank of America analysts have suggested that Warner Bros. Discovery might consider splitting its digital streaming and studio businesses from its legacy TV operations. Zaslav himself has said the company is exploring "all things operationally and strategically," leaving open the possibility of mergers, acquisitions, or divestitures.
The restructuring at CNN also extends to its television programming. Changes are expected to include a shake-up of its lineup, with veteran anchor Wolf Blitzer reportedly moving to a morning show slot. This marks yet another effort to revitalize the network's programming amid its pivot to digital.
Thompson, who took the helm at CNN more than a year ago, has consistently signaled his intent to lead the organization through a digital transformation. With a focus on premium digital ad experiences and subscription-based products, he aims to position CNN as a leader in the digital news era.
