CNN’s senior executive, Chris Licht, warned employees in an all-staff message on Wednesday that more layoffs are underway at Warner Bros. Discovery, Inc. According to the message, Licht stated that CNN would contact a small number of people, primarily some of its paid contributors, on Wednesday and the impacted staff on Thursday. He would provide more information about the shake-up on Thursday afternoon.
Fake News Downsizing: CNN Boss Alerts Employees of Massive Layoffs (freebeacon.com)
Licht wrote that he understands that these changes impact both their departing colleagues and those who remain. “We also have resources to help you,” Licht said. The job layoffs were expected and come at a time when businesses are striving to cut expenses and reduce manpower in preparation for an economic recession.
In October, Licht warned that CNN would be going through some changes due to “widespread worry about the global economic picture” and that the changes would touch “people, budgets, and projects.” AMC Networks announced Tuesday that it would lay off 20% of its US workforce due to industry pressures and a tough economy.
BuzzFeed announced on Tuesday that it would lay off 12% of its workforce, making the digital news and entertainment juggernaut the latest media company to make short layoffs amid a deteriorating economic climate.
Jonah Peretti, the company’s founder and CEO blamed the layoffs on “a mix of worsening macroeconomic conditions” and changes in how consumers consume information in a note to affected staff.
The decision to reduce operating costs comes as the company’s stock is near an all-time low of approximately $1.10 per share, down about 90% in the last year. A spokeswoman for BuzzFeed and Complex, which it acquired last year, said the cuts, likely to affect approximately 180 people, targeted sales, technology, production, and content departments. According to the spokesman, no cuts were made to its tasty food brand, BuzzFeed News, or HuffPost, which BuzzFeed also acquired.
As the advertising business declines and the economic outlook dims, a wave of media companies has cut expenditures in recent months.