CNN Announces Job Cuts Amid Shift to Digital Focus
Approximately 210 employees laid off as the media giant reallocates resources to digital initiatives.
CNN has announced the layoff of around 210 employees, representing about 6% of its workforce, as part of a strategic shift towards the digital marketplace.
This restructuring is part of a larger transformation aimed at enhancing the company's presence on streaming platforms and developing new digital services.
In a memo to staff, CEO Mark Tomson confirmed the layoffs and expressed empathy for those affected while indicating that the overall headcount at CNN would not decrease significantly.
The company plans to invest $70 million into new digital projects aimed at modernizing its television channels and expanding services for digital subscribers.
Operational changes may involve relocating certain programs from New York and Washington, D.C., to Atlanta, where production costs are lower.
However, it is noted that these job cuts will not affect CNN's high-profile on-air personalities under contract.
Currently, CNN employs approximately 3,500 individuals worldwide, and a spokesperson declined to comment further on the details of Tomson's memo.
As part of its new digital strategy, CNN is preparing to launch several digital services and improve its streaming capabilities.
Following the unsuccessful launch of CNN+ in 2022, the company is pivoting towards a new platform that will allow users to access content outside of the existing Max platform.
In October 2024, CNN introduced a digital subscription service priced at $3.99 per month, with a goal of achieving $1 billion in annual revenue by 2030. Moreover, CNN plans to hire around 100 new employees to bolster its digital operations.
One notable upcoming feature is a 'lifestyle' digital product currently in development.
Discussions about potential layoffs had been circulating since November of the previous year when reports indicated that a larger wave of job cuts might occur in March 2025.
Employees have expressed concerns, with some fearing that expensive productions in New York may be discontinued and that more resources will be centralized in Atlanta.
Compounding these challenges, CNN has faced significant financial losses, with a forensic economist testifying in January that the company’s valuation plummeted from $4.4 billion in 2021 to $2.3 billion in 2023. Additionally, revenues decreased from $2.2 billion to $1.8 billion, while net profits declined from $600 million to $400 million.
In parallel, NBC News has also announced plans to lay off up to 50 employees, with their spokesperson refraining from commenting on specific details.
Both CNN and NBC News have initiated these job cuts in anticipation of shifts occurring around the inauguration of Donald Trump, as the media industry increasingly relies on streaming and social media platforms amid declining viewership for traditional television.
This restructuring is part of a larger transformation aimed at enhancing the company's presence on streaming platforms and developing new digital services.
In a memo to staff, CEO Mark Tomson confirmed the layoffs and expressed empathy for those affected while indicating that the overall headcount at CNN would not decrease significantly.
The company plans to invest $70 million into new digital projects aimed at modernizing its television channels and expanding services for digital subscribers.
Operational changes may involve relocating certain programs from New York and Washington, D.C., to Atlanta, where production costs are lower.
However, it is noted that these job cuts will not affect CNN's high-profile on-air personalities under contract.
Currently, CNN employs approximately 3,500 individuals worldwide, and a spokesperson declined to comment further on the details of Tomson's memo.
As part of its new digital strategy, CNN is preparing to launch several digital services and improve its streaming capabilities.
Following the unsuccessful launch of CNN+ in 2022, the company is pivoting towards a new platform that will allow users to access content outside of the existing Max platform.
In October 2024, CNN introduced a digital subscription service priced at $3.99 per month, with a goal of achieving $1 billion in annual revenue by 2030. Moreover, CNN plans to hire around 100 new employees to bolster its digital operations.
One notable upcoming feature is a 'lifestyle' digital product currently in development.
Discussions about potential layoffs had been circulating since November of the previous year when reports indicated that a larger wave of job cuts might occur in March 2025.
Employees have expressed concerns, with some fearing that expensive productions in New York may be discontinued and that more resources will be centralized in Atlanta.
Compounding these challenges, CNN has faced significant financial losses, with a forensic economist testifying in January that the company’s valuation plummeted from $4.4 billion in 2021 to $2.3 billion in 2023. Additionally, revenues decreased from $2.2 billion to $1.8 billion, while net profits declined from $600 million to $400 million.
In parallel, NBC News has also announced plans to lay off up to 50 employees, with their spokesperson refraining from commenting on specific details.
Both CNN and NBC News have initiated these job cuts in anticipation of shifts occurring around the inauguration of Donald Trump, as the media industry increasingly relies on streaming and social media platforms amid declining viewership for traditional television.
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