Some of the top U.S. news channels are reportedly planning layoffs amid a focus on digital, media reports indicated Thursday.
CNN, a unit of Warner Bros Discovery, plans to lay off hundreds of employees on Thursday as it refocuses the business around a global digital audience, CNBC reported on Wednesday, citing people familiar with the matter.
The job cuts come as CNN looks to rearrange its linear TV lineup and build out digital subscription products, CNBC said, adding that the move will help CNN lower production costs and consolidate teams.
Some shows produced in New York or Washington may move to Atlanta, where production can be done more cheaply, the report added.
NBC News, owned by Comcast, is also planning job cuts later this week, according to the report. While there is no exact number, the layoffs will be well under 50. NBC News announced earlier in November that it plans to spin off its MSNBC and CNBC channels.
These developments reflect a broader trend in the media industry as organizations adapt to changing consumer habits by focusing more on digital platforms.
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, CNBC report said. Part of that investment will go toward hiring employees in areas where CNN sees potential growth avenues, such as data scientists and product development.
Comcast and Warner Bros Discovery did not immediately respond to Reuters requests for comment on the report.
The report also said that both news organizations waited until after the U.S. presidential inauguration to make the cuts.
The Washington Post, owned by Amazon.com founder Jeff Bezos, said earlier this month that it would lay off about 4% of its workforce or less than 100 employees in a bid to cut costs as the storied newspaper grapples with growing losses.
In November, the Associated Press (AP) said it would cut about 8% of its workforce as it looks to modernize its operations and products.
As the media landscape evolves, both CNN and NBC News appear to be implementing these measures to position themselves for future success in an increasingly digital world.
