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Sara Fischer: CNN to cut 200 jobs amid restructuring, new digital investments
This piece is by WWSG exclusive thought leader, Sara Fischer.
CNN CEO Mark Thompson on Thursday announced sweeping cuts impacting around 6% of the company’s workforce.
- The news came alongside several new developments, including a cross-device streaming strategy, a digital transformation roadmap, and new business goals.
Why it matters: Like most cable networks, CNN faces challenges in growing its business in the digital era. Corporate mergers and a hyper-partisan political environment have also complicated its efforts.
The big picture: Thompson assured anxious employees that its parent, Warner Bros. Discovery (WBD), will support CNN’s digital transformation plan by investing $70 million in CNN’s new efforts.
- That was an important message, considering years-long speculation that WBD may look to sell the network someday to pay down its debt.
Zoom out: CNN has historically been dependent on revenues from its cable network, despite its website’s massive scale.
- Thompson said Thursday the network will double down on innovation, with a new goal of reaching $1 billion in digital revenue by 2030.
- WBD’s investment will help the company add “hundreds of new roles in the coming quarters across CNN Worldwide,” to help support its strategy, Thompson said. The network is targeting the first 100 or more positions to be posted and filled in the first half of 2025.
Of note: Despite the cuts, Thompson said CNN’s headcount won’t fall significantly this year because of new position investments.
State of play: As part of the changes, Thompson said the company plans to elevate CNN’s lifestyle coverage to make it more of a core part of CNN’s digital editorial offerings.
- He said CNN plans to launch one new lifestyle-oriented product publicly this year.
- CNN’s core digital assets — CNN.com and the CNN app — will be turned into a “modern and premium video-driven experience,” he said.
Between the lines: To achieve the network’s business goals, Thompson said the company will make its advertising experiences more premium “to drive sustainable, long-term advertising and commerce revenue growth.”
- CNN will continue to invest in its nascent digital subscription offering, as well. Its subscription products will provide “need-to-know” news and analysis, and “want-to-use” offerings anchored by lifestyle journalism.
Zoom out: As CNN continues to transform its business for the digital future, it’s also looking for ways to remain relevant in linear television.
- Thompson said the company, which has been broadcasting for 45 years, will refresh its weekday domestic lineup to “bring energy and competitive edge to our delivery.” A revised international schedule will soon follow.
The big picture: CNN has faced many job cuts and leadership changes over the past few years, impacting employee morale.
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