CNN staff are feeling the pressure as the network undergoes yet another corporate restructuring by its parent company, Warner Bros. Discovery (WBD). This has contributed to a dip in morale in the newsroom.
“It’s really tough,” one employee shared, indicating a general sense of uncertainty among the team.
Just last week, WBD announced its split into two separate entities—one focusing on studio and streaming operations, while the other will oversee its cable network, tentatively named the Global Network. This new division will reportedly be led by WBD CFO, Gunnar Wiedenfels, with the transition aimed to be completed next year.
Staff members at CNN have expressed that they were aware of this shift. “We knew something had to give,” they remarked, noting that there’s a desire for the company to be sold to new investors who would be willing to inject capital into it.
According to insiders, there are “tears on the horizon” as Warner Bros. Discovery plans potential spinoffs of its networks.
The Gloal Network currently holds a 20% interest in the studio and streaming sector, yet the impending changes will likely place significant financial pressure on WBD’s already hefty debts. As Wiedenfels takes control, further budget cuts seem inevitable.
“They’ve made it clear that cuts are forthcoming,” remarked one staff member. “With no streaming service launched yet, it’s hard to see how things won’t worsen, especially with a new one planned to debut this fall.”
Another employee conveyed a sense of resignation: “It seems like they’re focused more on trimming down than growing. It’s all about managing revenue now, which makes you wonder how fast things will shrink.” They noted that this led to the division of assets.
For years, CNN has experienced a tumultuous relationship with corporate owners—from Time Warner in the 1990s to AOL, and now WBD. Under the leadership of CEO Mark Thompson, who has a history with the BBC and The New York Times, CNN is supposed to be modernizing, but frustrations are currently being directed at WBD executives.
Amid these challenges, there are predictions about CNN’s future, including concerns that it could fade into obscurity like HLN. However, another staff member pointed out that critics may not fully grasp the complexities at play, saying, “People are just reading the same tea leaves we all are regarding cable’s broader issues.”
“I sometimes wonder what happens if this all goes under, but I suppose I’ll find another job—maybe one that pays better, who knows?” a third employee mused. “In the grand scheme of things, it’s just a job.”
Despite all the current struggles, there’s still a glimmer of optimism within CNN. “I think there’s potential for CNN to emerge as a strong brand, much like Nike,” one staff member stated, acknowledging their bias. “If it were to stumble, it would really be about choices made at the management level.”
A CNN spokesperson chose not to comment, and WBD did not respond to inquiries.
Overall, CNN finds itself at a challenging juncture, particularly this year, marking a notable low in viewer demographics, especially within the key 25-54 age group.
