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A defamation lawsuit involving CNN and fears it could lead to a large payout to the plaintiff are top concerns for the network’s management, while regular employees are already struggling with low ratings and pending layoffs, insiders say.
CNN is already struggling with minimal viewership informed about the upcoming layoffs as he prepares to cover Trump’s impending second presidency.
It’s also now a public defamation lawsuit over the 2021 segment, which plaintiff Zach Young claims defamed him by implying that he illegally profited by helping people flee Afghanistan on the “black market” during The Biden administration withdrawal of troops from the country.
“It’s a big concern of senior management,” an insider told CNN Fox News Digital. “All the damn things, text messages, etc., have already been released. So I don’t think there is any concern in terms of exposure. But I think there is some concern about the outcome. It seems very likely that CNN will have a huge payout at the end of this.”
CNN anchor Jake Tapper and correspondent Alex Marquardt during a 2021 segment at the center of a defamation lawsuit against the network. (CNN/Screenshot)
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Young claims CNN “destroyed his reputation and business” by branding him an illegal profiteer who exploited “desperate Afghans” in a Nov. 11, 2021 story that first aired on CNN’s “The Lead with Jake Tapper.”
The discovery process has led to some embarrassing revelations, such as an internal communication between CNN employees showing that editors were concerned about the original segment but aired it anyway. Other reports indicated that CNN employees used profanity and derogatory language when privately discussing Young. Young also showed the message that he warned CNN’s Alex Marquardtwho told the segment that he would seek legal damages if he continued the story.
However, since this is all about a segment from 2021, the CNN insider added that it’s not a topic of regular conversation among the network’s rank-and-file.
Another CNN insider said the lawsuit was a “big risk,” but they said the network’s lawyers felt good about the outcome. But they added that with potential layoffs and ongoing ratings issues, there are plenty of other things to worry about.
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U.S. Navy veteran Zachary Young says CNN “ruined his reputation and business” by branding him an illegal profiteer who exploited “desperate Afghans,” during a Nov. 11, 2021, segment that first aired on CNN’s “The Lead with Jake Tapper”.
“I don’t know if it will work. But for some reason it didn’t get through to the org at all,” they said. “And that’s probably because the organization is in toxic shock and crisis in its situation on a daily basis, so there are bigger moral fish to fry.”
“Ratings, cuts, strategy confusion, all of the above,” they said. “Which is not unique to CNN, but very relevant to CNN.”
CNN CEO Mark Thompson, who took over in 2023 after CEO Chris Licht was ousted, did not deny to City Hall staffers this week that layoffs are expected. according to reports.
Puck news reported in November that “hundreds” of CNN employees are expected to be affected by layoffs in the coming months as Thompson seeks to implement digital priorities. Thompson, who is credited with reviving The New York Times’ business model, has already dabbled with CNN, launching a subscription plan for his news site last year.
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CNN along with the progressive output of MSNBC, saw a drop in ratings following the victory of President-elect Donald Trump. CNN hit another low in December, ending the year with its smallest daily audience in the network’s history, with a paltry 91,000 in the 25-54 demo and 481,000 in total viewers.
CNN boss Mark Thompson took over the network in 2023. (Sanjit Das/Bloomberg via Getty Images)
CNN’s first insider praised Thompson’s leadership but said people remain concerned about the industry-wide headwinds that have led to layoffs other major media companies over the past year, like the Washington Post, HuffPost TIME, and the Los Angeles Times.
“I think people still feel like it’s a very uncertain time in business in general, so I think there’s still a sense of ‘what’s going to happen with CNN’ and that people don’t really know about it,” they said .
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Fox News Digital has reached out to a CNN spokesperson for comment.
Joseph A. Fox News’ Wolfson and Brian Flood contributed to this report.
