According to reports, CNN is expected to experience significant layoffs and record poor ratings at the end of CEO Chris Licht’s first year in charge. In April, during the network’s parent company’s merger with Warner Bros.
Discovery, Licht took over for outgoing CNN CEO Jeff Zucker. According to numerous sources, Licht has seen significant financial difficulties and staffing challenges for the next new year during his first year in the role.
The surge in digital subscriptions is expected to cause the network’s profit to go below $1 billion for the first time since 2016, according to a business evaluation cited by CNBC in October. In October, Licht issued a message warning of impending layoffs that would “impact people, budgets, and projects” due to the decline in profitability.
According to reports, Licht stated there was widespread concern over the global economic outlook, and we must integrate that risk into our long-term strategy. That is alarming. They will influence people, money, and projects.
According to reports, Licht had previously stated that he would not reduce the number of jobs. The job cutbacks are anticipated to take place in the first few days of December after being ordered by Warner Bros. Discovery CEO David Zaslav to make $100 million in staff cuts to balance the budget.
According to rumors, Licht has a list of employees who will be let go. Although employee layoffs were not anticipated, a CNN representative allegedly stated in June that Licht would review the network’s resources. The person commended the network’s CEO for acting responsibly in light of the business’s recent financial difficulties. According to the source, “the Zucker era was like the roaring 20s.
People were spending money hand over fist.” The source said fat is everywhere, and although it hurts, these layoffs are necessary. According to the outlet, the network’s ratings declined in 2022, falling behind its main rivals, Fox News and MSNBC.
According to the site, the network is approaching its lowest-rated year among viewers aged 25 to 54 since rating tracking started in 1992. Viewership for the program’s election coverage, which has historically increased dramatically, decreased compared to the other two networks.
Between October 10 and November 11, CNN selected reporter Jake Tapper to cover the midterm elections. According to Licht, Zaslav has stated that he is more concerned with changing the network’s left-leaning orientation than with its viewership figures.
In light of Licht’s attempts to adopt a more bipartisan tone, some of the network’s key anchors, such as former “Reliable Sources” presenter Brian Stelter and former White House correspondent John Harwood, have left the organization.
Additionally, he got rid of “New Day” and “Don Lemon Tonight” and put Don Lemon on the new morning show “CNN This Morning,” which also has Kaitlan Collins, a former Daily Caller reporter, and Poppy Harlow as the anchor.