CNN announces about 200 layoffs as it tries to modernize operations

Warner Bros. Discovery’s CNN announced Thursday that it is laying off about 6% of its total staff, or about 210 employees, as it refocuses its business on a global digital audience.

CNN CEO Mark Thompson announced the job losses in a memo to staff Thursday, confirming a CNBC report Wednesday that the cuts are coming. In the letter, Thompson pointed out that CNN does not expect the total number of employees to drop “much” this year because the company plans to invest $70 million in new digital plans.

“I know that regardless of the total number of job losses, the impact on the individuals involved can be enormous,” Thompson wrote in a memo obtained by CNBC. “The process of change is essential if we are to progress in the future, but I recognize and deplore its very real human consequences.”

The layoffs come as CNN retools its linear TV lineup and builds digital subscription products. The cuts will help CNN reduce production costs and consolidate teams, according to people familiar with the matter, who spoke on condition of anonymity to discuss non-public thinking. Certain shows produced in New York or Washington could be moved to Atlanta, where production can be done more cheaply, the people said.

For the most part, the job cuts will not affect CNN’s most recognizable names, who are under contract, the people said. CNN has approximately 3,500 employees worldwide.

A CNN spokesman declined to comment beyond Thompson’s statement.

In the memo, CNN announced several new initiatives. The company is planning a new way for digital subscribers to stream CNN outside of CNN Max, which exists within Warner Bros. Discovery’s wider Max streaming services. CNN plans to release details about the content “in the coming months,” Thompson said in a memo to staff. CNN planned to launch its own streaming service, CNN+, in 2022, but the service was closed almost immediately by Chris Licht, who was appointed to take over as CEO.

In October, CNN launched a digital paywall, charging $3.99 per month to older users of the site. The news organization’s goal is to reach one billion dollars in revenue by 2030.

CNN plans to add at least 100 new jobs in the coming months to build a broader digital presence, investing in products and technology as well as “new high-quality journalism and storytelling.” Part of that investment will be in a “lifestyle digital product” that CNN is developing.

CNN is also renewing its linear TV schedule in the US and abroad.