CNN CEO, Mark Thompson unveiled a plan to modernize the network, including a billion-dollar digital subscription push, experimentation with artificial intelligence, and newsroom restructuring.
The restructuring will result in around 100 layoffs (3 percent of the workforce), with affected employees receiving severance packages. The announcement was made known in a memo described as “key milestone in the transformation of CNN,” to staff.
Thompson, appointed last year, emphasized the urgency of adapting to a digital future. Legacy media like CNN, dependent on cable fees, faces a shrinking market as viewers shift to streaming services.
“Turning a great news organization towards the future is not a one-day affair. It happens in stages and over time.
“Today’s announcements do not answer every question or seek to solve every challenge we face. However, they do represent a significant step forward and I hope you will read about them in that spirit,” Thompson said in the memo.
Central to Thompson’s strategy is building a digital subscription business generating over $1bn. A direct-to-consumer model is seen as a solution to declining cable revenue.
CNN previously launched CNN+, a subscription service, but it was shut down after a merger. Currently, CNN content resides within Warner Bros. Discovery’s broader streaming service, Max.
Thompson offered few specifics but promised “products that will provide need-to-know news, analysis and context in compelling new formats and experiences.”
The first product is expected to launch by the end of 2024.