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| Ellison, Thompson, Weiss |
David Ellison’s Skydance is losing longtime employees at CNN and CBS News that the company had hoped to retain, as cost-cutting buyouts prompt unexpected departures, the Status newsletter reported Tuesday.
At CNN, some senior managers in the New York bureau have accepted buyouts, while experienced employees in Atlanta and veteran camera operators are preparing to leave, according to the report. The departures have alarmed some CNN managers, though other executives are relieved that longtime employees have the chance to leave on their own terms. One insider described the exits as a “brain and production drain.”
The buyout program was announced Oct. 26, less than three weeks after Skydance closed its acquisition of Warner Bros. Discovery. The merged company is targeting at least $6 billion in annual savings from the deal within three years.
Managers cannot privately discourage employees from accepting buyouts, Status reported. CNN had not offered a buyout program since 2019, leaving some longtime employees waiting for an opportunity to depart with severance.
Most eligible CNN employees can receive three weeks’ pay for each year of service, up to a maximum of two years’ salary. Employees must have at least 15 years of service and hold a title no higher than vice president to qualify. Under the standard formula, 15 years of service would yield about 10 months’ pay.
“The reality is, the package they get if they’re fired or let go as part of a restructuring — it will likely not be as good as this offer,” a television news veteran told Status.
At CBS News, led by Editor-in-Chief Bari Weiss, employees are also weighing their futures amid concerns about further departures, according to the newsletter. Some “60 Minutes” producers have left voluntarily over the past year, while correspondents and managers have been fired, prompting concerns about more exits.
A larger group of CBS News employees received buyout offers than at CNN. Most were offered two weeks’ pay for each year of service, while some longer-tenured employees received more generous terms. The offers went out Oct. 26, and many employees were given until Sunday to decide. Many CBS News employees reportedly have until next Wednesday to accept. Those who take the packages are scheduled to leave Dec. 4.
The loss of veteran employees could have consequences beyond immediate payroll savings, said Amore Philip, founder of New York-based Apples & Oranges Public Relations.
“Payroll savings show up in one quarter. The cost of lost expertise shows up over the following year, in what goes on air and in audience trust,” said Philip, who has spent 16 years working with newsrooms and television producers as a publicist. “A newsroom can replace a title. It can’t quickly replace the person who knows who to call and gets the call returned,” she told The NY Post.
The Post reported last month that Skydance was offering voluntary buyouts alongside a five-day return-to-office mandate as Ellison moved to streamline the media company. In an Oct. 26 memo obtained by The Post, Ellison and co-CEO Ynon Kreiz said the company was offering exit packages to eligible employees who might not see a future at the merged company.
A larger group of CBS News employees received buyout offers than at CNN. Most were offered two weeks’ pay for each year of service, while some longer-tenured employees received more generous terms. The offers went out Oct. 26, and many employees were given until Sunday to decide. Many CBS News employees reportedly have until next Wednesday to accept. Those who take the packages are scheduled to leave Dec. 4.
The loss of veteran employees could have consequences beyond immediate payroll savings, said Amore Philip, founder of New York-based Apples & Oranges Public Relations.
“Payroll savings show up in one quarter. The cost of lost expertise shows up over the following year, in what goes on air and in audience trust,” said Philip, who has spent 16 years working with newsrooms and television producers as a publicist. “A newsroom can replace a title. It can’t quickly replace the person who knows who to call and gets the call returned,” she told The NY Post.
The Post reported last month that Skydance was offering voluntary buyouts alongside a five-day return-to-office mandate as Ellison moved to streamline the media company. In an Oct. 26 memo obtained by The Post, Ellison and co-CEO Ynon Kreiz said the company was offering exit packages to eligible employees who might not see a future at the merged company.