Warner Bros. Discovery’s (NASDAQ: WBD) CNN plans to lay off hundreds of employees Thursday as it refocuses the business around a global digital audience, according to people familiar with the matter.
The layoffs come as CNN is rearranging its linear TV lineup and building out digital subscription products. The cuts will help CNN lower production costs and consolidate teams, said the people, who spoke on the condition of anonymity to discuss nonpublic changes.
Certain shows that are produced in New York or Washington may move to Atlanta, where production can be done more cheaply, said the people.
For the most part, the job cuts won’t affect CNN’s most recognizable names, who are under contract, said the people. CNN has about 3,500 employees worldwide.
During a town hall meeting earlier this month, CNN CEO Mark Thompson said the media company has received an investment of “more than $70 million” from Warner Bros. Discovery to help fund the company’s digital operations. Part of that investment will go toward hiring employees in areas where CNN sees potential growth avenues, such as data scientists and product development.
In October, CNN launched a digital paywall, charging heavier users of the site $3.99 per month.
NBC News is also planning cuts later this week, according to people familiar with the matter. While the exact number couldn’t be determined, the job losses will be well under 50.
WBD shares acquired four cents to $10.09.
