CNN to axe 6% of its workforce as it splits cable and streaming

Bengaluru — Warner Bros Discovery-owned CNN will lay off about 6% of its workforce as the TV news outlet continues to shift its focus towards a more digital-centric strategy, according to an internal memo seen by Reuters on Thursday.

Legacy cable networks, a profitable business for decades, have been hit by intense cord cutting by consumers who favour streaming services.

Warner Bros Discovery is undergoing significant restructuring and said in December it plans to split its cable TV networks from its streaming and studio operations, forming two separate units.

Under the new structure, the cable TV business — including CNN, TNT and Animal Planet — will be consolidated into a unit named Global Linear Networks.

With the job cuts, CNN seeks to streamline its cable TV line-up and enhance its digital subscription offerings to better align with evolving viewer trends.

“Our objective is a simple one: to shift CNN’s gravity towards the platforms and products where the audience themselves are shifting,” CNN CEO Mark Thompson said in an internal memo.

Thompson said CNN has started development on a new streaming service for news programming similar to its TV product.

CNN also plans to launch a new lifestyle-orientated product this year, the memo said, adding that CNN is looking to open up and fill at least 100 new posts in the coming months as part of the digital pivot.

The digital efforts were financed by a $70m investment from Warner Bros Discovery, Thompson added.

In October, CNN introduced a digital paywall requiring some users to pay $3.99 a month for access to its content.

The move aimed to create a new digital revenue stream as the network looks to offset the decline in TV.

Reuters