CNN announced a restructuring Thursday that includes some 200 layoffs, an accelerated pivot to digital operations and new TV roles for personalities like Wolf Blitzer, Jake Tapper and Audie Cornish.
It’s the boldest revamp yet in the 18-month tenure of CEO Mark Thompson, a former chief executive at The New York Times and BBC called upon by parent company Warner Bros. Discovery to revive the news outlet’s flagging fortunes.
The layoffs are concentrated in CNN’s TV business, where ratings have tumbled as consumers cut off cable and seek other news sources. They will eventually be offset by new hires in digital, where Warner Bros. Discovery is making a $70 million investment, CNN said.
“This is not a cost-saving exercise,” Thompson said in an interview. “We’re actually leaning in with increased investments.”
Layoffs have either taken place or are anticipated across the news industry. CNN’s ratings have taken a hit since the election of President Donald Trump, a longtime critic of the network. CNN averaged 1.7 million viewers for Trump’s inauguration this week, compared to 8 million for Joe Biden’s inaugural four years ago, though audience can fluctuate based on the political stance of the person being inaugurated.
CNN also took a financial hit — how much is unclear — when a Florida jury last week found the network liable for defaming a US Navy veteran on a story involving a paid effort to extract endangered Afghans following their country’s Taliban takeover. The network settled the case before the jury could fully decide damages.
CNN announced Thursday it was developing a product that would allow consumers to watch a TV-like video stream on any device, although it won’t be TV simulcast. There was no estimated launch date.
Under Thompson, CNN has quietly redesigned and offered new features on its CNN.com website. Late last year, it instituted a $3.99 monthly and $29.99 yearly subscription for its heaviest users, and is working on new online products in areas like lifestyle, weather and sports.
In some respects, Thompson is trying to do for CNN what he did at the Times, where its digital products modernized the newspaper’s business. Executives are hoping CNN’s video component and international presence offers growth opportunities that won’t duplicate the Times.
