CNN Layoffs: 'Difficult Time'

CNN is facing its first major layoffs in many years as its parent company Warner Bros. Discovery is in major cost-cutting mode in a very uncertain economic environment.

Rodney Ho at ajc.com writes Chris Licht, the new head of CNN, sent a memo warning that the layoffs would start Wednesday with cuts to paid contributors and full-time employees Thursday. He had given a head’s up last month that such cuts were imminent before the end of the year.

“It will be a difficult time for everyone,” Licht wrote.

It’s unclear how many employees will ultimately lose their jobs. CNN worldwide has about 4,000 employees with about 1,500 of them based in Atlanta.

In his memo to staff, Licht said laid off employees who are bonus eligible will still receive their 2022 bonuses.

While Atlanta was where CNN started in 1980 as part of Ted Turner’s vision of a 24/7 cable news operation, headquarters shifted to New York City starting in the 2000s as major decisionmakers left Atlanta. All weekday anchors left Atlanta after Jeff Zucker took over in 2013. The primary CNN network now only has weekend anchors based in Atlanta but many producers remain. CNN International and CNN.com also have major operations out of CNN Center.

AT&T, before selling off CNN’s parent company, sold CNN Center. CNN has maintained its operations there for now, but there are plans to begin moving employees to the Midtown Turner campus next year.

Ad revenues for media companies are largely down this year and others companies such as Disney and AMC have announced planned cutbacks.

CNN has seen a major drop in ratings this year and its profits will fall below $1 billion for the first time in several years. But it still remains a hugely profitable operation in the Warner Bros. Discovery family.

David Zaslav, chief executive of Warner Bros. Discovery, has told investors he is seeking $3.5 billion in savings across the entire company, which includes TNT, TBS, Adult Swim, Cartoon Network, truTV and Turner Classic Movies operations in Atlanta.

CNN's Reliable Sources media column Wednesday chronicled other media reductions:

• Gannett staffers are bracing for layoffs which are also set to take place on Thursday. (Poynter)
• NPR CEO John Lansing announced the radio network will need to cut at least $10 million in spending, imposed near-freeze on hiring. (NPR)
• The Washington Post will end the print edition of its Sunday magazine, executive editor Sally Buzbee said, cutting 10 staffers. (WaPo)
• Paramount TV Studios and CBS Studios laid off staffers Wednesday. Nellie Andreeva reports less than 30 were impacted. (Deadline)
• Meta will vacate 250,000 square feet of its NYC office space at Hudson Yards in the latest sign of belt tightening. (NY Post)
• Amazon CEO Andy Jassy said an "uncertain" economy pushed the e-commerce giant to move ahead with rare and wide-ranging layoffs. (CNN)