Layoffs in the media: CNN job cuts come amid dismal ratings
Legacy media company CNN is preparing to cut hundreds of jobs as it pivots to a global digital-first business model. The company has been struggling for months to gain traction from cable TV viewers.
CEO Mark Thompson is expected to announce the layoffs on Thursday, sources familiar with the matter told CNBC.
CNN pivoting from cable TV to digital media
The network is said to be restructuring its cable news production, with plans to move shows to Atlanta from New York and Washington where production costs are reportedly higher. The changes also aim to streamline teams, the sources said.
CNN employs some 3,500 staff members worldwide. An earlier spate of layoffs in July 2024 cut about 100 employees, or 3% of the workforce. CNN sought to revamp its global news coverage and enhance the roles of international bureaus, such as those in Hong Kong, London and Los Angeles.
With this set of job cuts, however, CNN now wants to bolster its digital operations to become a billion-dollar vertical. Thompson told staff the company had received upwards of US$70 million from its parent Warner Bros. Discovery to execute the plan.
Despite the retrenchment in its cable TV business, the network will hire for roles in high-growth areas in its digital operations, such as data scientists, AI developers and product developers.
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CNN’s criticism of Trump
Some of CNN’s most recognisable talent will likely be spared in this round of layoffs as they remain under contract. However, earlier reports suggested that Jim Acosta, who has been dubbed Donald Trump’s “most hated CNN anchor,” will have his show relegated to a midnight slot despite garnering good ratings.
Acosta is a known Trump critic, often crossing swords with the president during his first term. The move to a dead hour is seen by industry observers as a way to appease Trump and sideline his critics.
The jobs cuts this month come in the wake of dismal ratings for mainstream news outlets like CNN and NBC, particularly after Donald Trump made a political comeback.
CNN has come under fire in the past for its perceived criticism of Trump, who has often accused mainstream media outlets of peddling fake news.
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This week, Thompson reportedly warned the company’s top talent, including Anderson Cooper and Jake Tapper, to refrain from “pre-judging” or commenting on Trump’s presidency prematurely.
A day before Trump’s inauguration, CNN’s senior staff members and personalities held a virtual meeting where the CEO reportedly cautioned them “against expressing any outrage of their own” in their coverage of Trump, particularly about the charges against him.
Viewers losing trust in legacy media
Since the November 2024 elections, CNN’s primetime ratings plummeted by 45% to just 398,000 viewers, its lowest in three decades.
As more people turn to streaming news on demand, especially on alternative media platforms, those who consume traditional media have been left dismayed by the coverage of legacy media today, CNN’s former CEO Chris Licht said at a business event.
“There isn’t a media executive that doesn’t know that there’s a problem,” Licht said. “The facts are that people have lost trust in legacy media.”
Apart from CNN, a few other mainstream media companies are laying off staff.
Sources said NBC News is also planning to let go of about 50 team members later this week.
Meanwhile, The Washington Post has fired 4% or fewer than a hundred workers purportedly to cut costs. The company’s billionaire owner, Jeff Bezos, has recently taken a friendlier approach to Trump despite having sparred on Twitter/X years before over the Post’s allegedly negative coverage of Trump’s first term.
In November, the Associated Press said it would reduce its workforce by 8% to enhance its operations.