With the fall in viewership and the rise of shortform content, CNN is now turning to job cuts to revive the network and bring it back on top. Spearheading this shift, Mark Thompson, Chief executive of the organization, has made some major changes to the news business in the last year, which includes an overhaul of the CNN business model and platform.
CNN’s restructuring efforts are expected to result in hundreds of employees losing their jobs this year. While there is no news of which teams will be affected by the decision, the anchors and other major personnel at the news network who are all under long-term contracts are not expected to be affected by the cuts. The organization plans on hiring more workers in areas where they see room for growth, but this can be expected to take place at a later stage.
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CNN Job Cuts Announced—Lowered Production Costs Remains a Primary Goal
There are a couple of different reasons for CNN’s January layoffs, but they all boil down to lowering production costs and refocusing the business on areas where the company expects to see growth. Most news shows have seen their ratings tank over the last few years, with fewer and fewer individuals tuning in to watch the news.
Despite CNN still being a recognizable global brand, the organization has witnessed a shift in audience preferences and consumption habits that has hurt the business over the years. In a defamation trial that concluded last week, it was revealed that the network’s revenue fell by 18%, or around $400 million, in three years. The data showed that the network brought in approximately $2.2 billion in revenue in 2021, but this fell down to $1.8 billion in 2023.
The fall in revenue does not mean the business has become entirely unprofitable, but the continuous fall in revenue and the implied 47.7% drop in net worth does paint a concerning picture.
Understanding the Purpose of CNN’s Cost-Cutting Layoffs
According to CNBC, the company is hoping to rearrange its linear TV lineup and build its digital subscriptions to reach a wider audience. The cost-cutting layoffs at CNN will help the organization cut off areas that are not meeting expectations while retaining the talent that can continue to support the business.
CNBC’s sources revealed that the company is also planning on moving the production of some of its ongoing shows to Atlanta, which should help cut costs compared to their existing expense of operating in New York and Washington.
The news organization launched a $3.99 monthly subscription model for heavy consumers of its content late last year, but that does not appear to have been enough to support the business. Last January, Thompson revealed that CNN would focus more heavily on its digital presence and video content as opposed to its text-based offerings.
CNN, a unit of Warner Bros Discovery, is said to have received over $70 million from WBD to channel into the digital operation at the organization. This fund will likely help set up new, more relevant departments and teams for which it will hire workers when necessary. There is also talk of the funds being diverted to hire data scientists and product developers who can help reshape the future of the business.
It is not known exactly how many of the 3,500 employees at CNN will be affected by the job cuts, but there should be more information on the matter in the coming weeks.
CNN Isn’t the Only News Platform Looking At Employee Cuts in 2025
Recently, the Washington Post announced that it was looking at eliminating about 4% of its workforce, which should amount to approximately 100 employees. Similar to CNN, the Jeff Bezos-owned organization has also witnessed a fall in its readership, with $77 million in losses reported in 2023.
Back in November, the Associated Press announced its decision to cut around 8% of its workforce with a goal of meeting the shifting consumer appetite. Now, along with CNN, Comcast’s NBC News has also begun working on cutting jobs. The scale of the layoffs is expected to be much smaller and should affect only around 50 employees, but the news of the cuts remains unpleasant all the same.
As CNN begins its job cuts and looks into reorganizing its business, consumers have to wait to see how it affects the reporting and digital presence of the news agency.
