CNN announces about 200 layoffs as it tries to modernize the business

Warner Bros. Discovery CNN announced Thursday that it is cutting about 6% of its total workforce, or about 210 employees, as it refocuses the business around a global digital audience.

CNN CEO Mark Thompson announced the job losses in a memo to employees Thursday, confirming a report by CNBC on Wednesday that the cuts would be coming. In the memo, Thompson noted that CNN does not expect its total staff to decline “significantly” this year because the company plans to invest $70 million in new digital plans.

“I know that regardless of the total number of jobs lost, 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 thrive in the future, but I both recognize and deplore its very real human consequences.”

The layoffs come as CNN retools its linear television 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. Some shows produced in New York or Washington may move to Atlanta, where production may be cheaper, the people said.

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

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

CNN announced several new initiatives in a memo. The company is planning a new way for digital subscribers to stream CNN beyond CNN Max, which exists on Warner Bros.’s broader Max streaming service. Discovery. CNN plans to announce content details “in the coming months,” Thompson said in a memo to staff. CNN planned to launch its own CNN+ streaming service in 2022, but the service was closed almost immediately by Chris Licht, who was appointed CEO.

In October, CNN launched digital payment, charging heavier site users $3.99 per month. The news organization’s goal is to reach $1 billion in revenue by 2030.

CNN plans to hire 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 made in a “lifestyle-oriented digital product” that CNN is developing.

CNN is also revamping its linear programming schedule in the U.S. and abroad.