CNN Boss Chris Licht Warns of Layoffs Amid Economic Downturn
Dimitrios Kambouris/Getty Pictures for Warner Bros. Discovery
CNN CEO Chris Licht emailed the network’s personnel on Wednesday afternoon and pointed out because taking over in May possibly he has been drilling down on the business’s construction and priorities and signaled impending budget cuts and feasible layoffs before the close of the year.
Licht, who took in excess of the scores beleaguered community amid a personal debt-major merger, referenced “widespread problem about the global economic outlook,” including that “we ought to factor that risk into our extended-time period arranging.”
“All this alongside one another will imply apparent transform to this business. That, by definition, is unsettling. These modifications will not be straightforward for the reason that they will have an impact on people, budgets, and projects,” Licht wrote.
Chris Licht just sent this observe to CNN workers: “There is common concern more than the world-wide economic outlook, and we will have to aspect that threat into our prolonged-time period scheduling. All this alongside one another will signify obvious transform to this group. … These modifications will not be easy…” pic.twitter.com/4eKUuitYFv
— Oliver Darcy (@oliverdarcy) October 26, 2022
The New York Periods claimed on Wednesday that CNN’s annual operating expenditures from 2022 are “estimated at about $882 million this 12 months, in accordance to estimates from S&P International Current market Intelligence.”
“Even a solitary-digit percentage reduce from that spending budget would shave millions of pounds and likely dozens of careers from the network,” the Times stated.
Compounding the negative news for CNN is the network’s yearly financial gain “is established to drop underneath $1 billion this calendar year for the very first time considering that 2016, when Donald Trump was elected president,” famous CNBC.
In addition, CNN’s dad or mum firm, fashioned in the merger that observed Licht choose in excess of the community, Warner Bros. Discovery, has also had its valuation “cut in half this calendar year as buyers have reduced their expectations on world-wide streaming subscriber advancement and macroeconomic pressures have pressured advertising and marketing profits.”
Licht spoke to CNBC and provided some added color to his tactic for remaking CNN into a lucrative and very rated community all over again.
“The manufacturer is the most trusted brand in the planet when it arrives to journalism, right up there with the BBC,” Licht informed the outlet, referencing his previously claimed system to refocus on news and significantly less on belief.
“I consider what took place a tiny little bit in this article in the past was it’s easy to get the speedy sugar high of scores and outrage. So, I’m attempting to do no harm to a terrific manufacturer,” Licht added.
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