TL;DR intro
- Job Cuts:CNN to cut approximately 100 jobs as part of a broader digital transformation strategy.
- Strategic Plans:The network plans to merge news-gathering and digital teams, invest in video, and launch new subscription products.
In a significant move to reshape its business, CNN announced it will cut about 100 jobs, aiming to consolidate its news operations and strengthen its digital presence. This decision is part of a broader strategy outlined by CNN Worldwide CEO Mark Thompson, according to an internal memo seen by Reuters on Wednesday.
The network plans to merge its news-gathering and digital news teams, invest heavily in video operations, and introduce new pay-per-view news products. "We are building a billion dollar+ digital business of the future," Thompson stated in the memo.
Thompson, who took over as CEO in October last year, previously held executive roles at The New York Times and the BBC. He is steering CNN towards a streamlined operation and increased sales to counter declining TV viewership.
New Subscription Models and Digital Focus
CNN is set to launch a standalone subscription product for CNN.com by the end of this year. This will be the first in a series of planned subscription offerings, including one focused on lifestyle and feature content. Additionally, the network will create a TV Future Lab, a unit dedicated to producing content for the Max streaming platform and repackaging CNN's TV content for digital channels. CNN began streaming content on Max last year and is owned by Warner Bros Discovery.
Thompson detailed several changes to CNN's editorial workflows, including a centralized planning and pitching process and the introduction of a new "story manager" role responsible for overseeing all aspects of a story from conception to publication or airing. He emphasized the importance of keeping users on CNN.com longer and finding ways to encourage repeat visits.
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Strategic Moves Amid Industry Challenges
The announcement comes as part of broader upheavals in the media industry. On the same day, CBS News President Ingrid Ciprian-Matthews announced her resignation, following Paramount Global's decision to sell control of CBS to Skydance, which is expected to lead to job cuts.
Thompson explained that the 100 jobs being cut represent a small portion of CNN's approximately 3,500-strong workforce. To minimize layoffs, the company closed open roles where possible. Despite these cuts, Thompson highlighted that CNN plans to hire roughly the same number of people in fiscal 2025, focusing on engineering, product, and customer-facing positions.
Embracing Digital and AI Innovations
To adapt to the evolving media landscape, CNN's digital strategy will shift towards more video content, reflecting the network's strength in video and reporting talent. Thompson noted that future digital products will better leverage CNN's video capabilities and anchor/reporting expertise.
The network also plans to develop more "news you can use" content, with an emphasis on lifestyle and features. These new products aim to provide various monetization opportunities, including sponsorships, new advertising formats, and direct-to-consumer subscriptions.
Thompson also mentioned CNN's push into artificial intelligence, exploring how the technology can be used safely and effectively to serve its audience.
A History of Leadership in Digital Transition
Mark Thompson's appointment as CNN's CEO follows his successful tenure at The New York Times, where he helped the newspaper transition to a digital-first organization. This shift made the Times more reliant on paid subscriptions, countering the decline in advertising revenue that has affected many newspapers.
In January, Thompson outlined a strategy for CNN that included a significant modernization of CNN.com, signaling a commitment to embracing digital innovation and maintaining the network's journalistic integrity.
