CNN, a unit of Warner Bros. Discovery, announced layoffs affecting 6% of its workforce—approximately 200 employees—as part of its ongoing transition to a digital-first business strategy. As initially reported by the Washington Post, CEO Mark Thompson shared the news in a memo, explaining that the cuts are part of a broader effort to address declining television viewership and pivot toward digital platforms, where audiences increasingly consume news.

The company plans to invest $70 million into developing subscription-driven digital products, including a streaming service for CNN programming and a lifestyle-oriented platform set to launch later this year. These initiatives follow the October 2024 introduction of CNN’s metered paywall, offering readers a subscription for $3.99 per month after a limited number of free articles.

Thompson outlined an ambitious target of generating $1 billion in digital revenue by 2030. “Our objective is to shift CNN’s gravity toward the platforms and products where the audience themselves are shifting and, by doing that, to secure CNN’s future as one of the world’s greatest news organizations,” Thompson said.

The layoffs are the latest in a series of staff reductions at CNN, which has faced mounting financial pressure amid the cable TV industry’s ongoing decline. In 2023, CNN reported $1.8 billion in total revenue, with the majority derived from cable distribution agreements. However, cord-cutting trends threaten these traditional revenue streams, pushing CNN and other legacy networks to invest in digital transformation.

The changes at CNN come amid a challenging period for the broader television news industry. Other major networks , such as ABC News and NBC News , are reportedly considering layoffs in response to similar pressures.

INSIDER TAKE

CNN’s workforce reduction and shift to digital underscore the media industry’s growing reliance on subscription-based models to counteract the decline of cable TV revenues.

While layoffs are an unfortunate necessity, the company’s $70 million investment signals a strategic commitment to adapt to evolving consumer preferences. The focus on creating accessible digital products, including a subscription-based streaming service and lifestyle platform, aligns with broader trends in the subscription economy.

However, questions remain about the long-term viability of CNN’s strategy. With consumers already overwhelmed by a proliferation of digital subscriptions, CNN will need to differentiate itself to attract and retain paying customers. Additionally, balancing the need for cost-cutting with maintaining high-quality journalism will be critical to sustaining subscriber growth and trust.

As CNN shifts resources to its digital operations, it joins a growing list of legacy news organizations making similar transitions. The success of this strategy could depend on whether CNN can effectively leverage its brand and reputation to build a loyal digital audience while minimizing disruption to its traditional revenue streams.

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