CNN is about to enter a “prominent period of change,” the news outlet’s chief warned employees in a new memo, hinting that layoffs and reorganization may be in store as the division’s corporate parent navigates an increasingly uncertain economy.
“There is broad risk to the global economic outlook, and we need to factor that risk into our long-term plans,” said Warner Bros. Discovery CEO Chris Leach. “All of this together means a visible change in this organization. That, by definition, is unpleasant. It won’t be easy, as these changes will impact people, budgets and projects.
The executive did not specify how many positions could be eliminated or in which positions within the company. Under Leach, CNN scaled back some of its voice-only workforce, and eliminated its streaming hub, CNN+, just weeks after its launch. CNN’s restructuring of business operations in 2010 He pointed out that it will be completed before the start of 2023. CNN typically employs between 4,000 and 4,500 employees, a person familiar with the matter said.
“We will be strategic in this process and minimize the impact on our core newsgathering business and digital, both of which have made smart changes,” Licht said. “Let me be clear: I will not allow these changes to affect our position as the world’s leading news source and we will continue to invest in areas of growth. When we complete this process, CNN will still be the largest, most respected news gathering organization in the world. We continue to cover any story, anywhere, anytime – with resources like no other. Four points.”
Licht has been investigating CNN’s business operations for several months as part of a review. His tenure began in May, and CNN has been pushing the network toward a more centrist philosophy, believing he was too passionate about former boss Jeff Zucker’s coverage of the Trump administration.
CNN’s quest to cut costs comes as its corporate parent is battling some tough business conditions. Warner Bros. Discovery CEO David Zaslav has promised investors that the company will cut $3 billion in costs after acquiring the company’s assets, formerly known as WarnerMedia, from AT&T. On Monday, the company indicated in a filing with the U.S. Securities and Exchange Commission that it would need to spend between $1 billion and $1.5 billion. Warner Bros. Discovery said it expects to write down more than $4 billion in pretax charges through 2020. More than $2 billion is related to easing development and relaunching older TV shows and movies.
The warning comes as many media companies face a possible economic downturn and pull back on advertising spending. Such terrain has been difficult for some time, as large marketers divert some of their dollars to new transit centers. Both Netflix and Disney, for example, are in the market to sell ads on ad-supported name streaming services.
The cuts — and the internal tension that can be associated with them — won’t ease the tension at CNN. The network is revamping a wide swath of programming and is set to launch a new morning schedule on Tuesday. It launched a new interview show hosted by Chris Wallace on Sunday nights and launched two new hourly programs – hosted by Jake Tapper at 9 pm and Laura Coates and Alisin Camerota at 10. None of the new shows managed to become a. It has received strong ratings so far.
Most of the country’s news operations They are betting that the 2022 midterm elections will help boost their fortunes. Viewership finds renewed interest after a presidential election falls and another approaches. In the third quarter, CNN’s average prime-time viewership among people ages 25 to 54 — the demographic most coveted by advertisers for news programming — fell 21 percent to 150,000, according to Nielsen. In contrast, MSNBC was down 22 percent, to an average of 127,000, while Fox News Channel was down 23 percent, to an average of 294,000.