CNN’s new president sought to allay fears with a memo Friday naming executives who will shake up the struggling network, days after it was revealed that bonuses were being cut companywide.
Mark Thompson, who took the helm of CNN in October after former CEO Chris Licht’s disastrous 13-month tenure, said he sees “changing the economics of television” and making CNN “more sustainable”. The details were clarified, citing the need to build a strong economic base. He outlined the change in direction in January.
Thompson did not mention bonus cuts, which were thought to affect top casters such as Anderson Cooper, Jake Tapper and Chris Wallace in addition to regular players. He seemed to admit that he had concerns about the original plan he outlined. .
That included promoting Virginia Moseley, a passionate news executive whom some staffers have called a “hole” and a “tyrant,” to lead the newsroom as editor-in-chief.
“Change is never easy, but since then I can’t tell you how many people have come up to me or emailed me and said they’re willing to try but don’t know when or how change will happen. I was shocked that he wanted to do it,”’ Thompson wrote.
As cord-cutting continues to hurt cable TV, Thompson is considering shifting CNN’s focus to digital, including “building a digital future,” “a global integrated multimedia news operation,” and “future “Television production with a focus on the future,” “Developing new sources of income,” and “Communication and culture.”
One insider shrugged off Friday’s memo as yet another nasty word salad from British-born Thompson, the former head of the New York Times and the BBC.
“It’s a five-point plan to create a five-point plan,” the media executive said. “In other words, we don’t have a plan, but we’re actually going to make a lot of plans. And don’t worry, we’ve got a lot of people overseeing the plans to make the plans. And Mark is going to make the plans.” We are supervising all of our people. Don’t worry, we have this completely under control!”
“He’s rearranging the deck chairs on the Titanic,” another source added.
Another CNN insider had a more positive view of the memo.
“I was frustrated that I didn’t hear from him, but I was grateful for the note. The timing couldn’t have been better,” the source said. “It’s well thought out. I think he answered the questions about how and what to do. He gave some very clear steps. That’s a good first step.”
The official added that CNN is such a “huge organization” that it “takes time” to “understand it well.”
Thompson said the network, under newly hired head of digital Alex McCallum, would “build” a “digital future” and leverage data science, machine learning and AI to generate new revenue. The company said it would develop “a new multimedia strategy across all platforms other than linear TV”. stream.
Thompson also said he would continue to “streamline production,” canceling “CNN This Morning,” hosted by Poppy Harlow and Phil Mattingly, and reapplying for 50 of the show’s staffers to new jobs. He pointed out that he had been instructed to do so.
He said the network would increase investment in CNN Originals, which includes shows such as “Stanley Tucci: Looking for Italy,” a strategic move to reduce spending on Originals produced by his predecessor, Richt. This effectively reversed the movement.
Sources told The Post that the company is in trouble after its new chairman and CEO cut employee bonuses by 15% to 20%, as previously reported by the Post. The atmosphere on the network is said to be tense.
Still, a source who worked closely with Mr. Thompson when he was at the helm of the New York Times added that the leader is “strategic” and cost-conscious.
“He was strategic, smart, kind and very fair,” the source said. “I think he probably has a tighter grip on the purse strings than the previous management.”
“He started the CNN job on August 30th. He started on October 9th,” the source said. “It’s a very hard job and a very demanding environment, but it certainly seems like he’s put in a lot of planning and planning over a long period of time.”
Thompson’s latest move, the bonus reduction, was communicated through a company-wide letter on Tuesday, telling staff to expect to receive 75% of their target bonus as part of their salary.
This amount was down from 90% of the bonus the previous year, when CEO Licht was fired.
“The tone of the email was that this year was a year of stability,” said a CNN source. “Fundamentally, I would say we’ve done a very good job of launching new programming and steadying the ship, but we’ve also encountered some of the same headwinds as other media companies.”
The person added that under Licht’s predecessor, Jeff Zucker, bonuses could exceed 100% of target in past years.
Sources close to the network confirmed the reduction in bonuses, but noted that all staff had been granted salary increases.
The official did not say whether the increase in merit would offset the decrease in bonuses.
CNN staffers are also talking about a recent slew of reports in Ankler and Rapp speculating that the salaries of high-paid anchors are slated to be cut under Thompson.
Sources told The Post that the network’s top players include Anderson Cooper, who makes an estimated $20 million, Jake Tapper, who makes more than $8.5 million, and Chris Wallace, who makes about $8 million. The highest-paid anchors are likely to see significant pay cuts in the future.
A CNN official said, “TV money is different than it used to be.” “All the anchors will be cut. Where else will they have to go?”
A CNN representative declined to comment.
