Ratings woes and a digital transformation push at CNN are prompting extensive layoffs and potential salary reductions for the network’s biggest stars, according to multiple sources familiar with the situation.
New CEO Mark Thompson is preparing to eliminate hundreds of positions across the organization as part of a sweeping overhaul aimed at modernizing the legacy news network.
The network’s viewership has plummeted to historic lows, with CNN recording significantly decreased ratings in the key 25-54 age demographic, particularly during recent election coverage.
High-profile anchors like Anderson Cooper, Jake Tapper, and Erin Burnett could face substantial pay cuts or non-renewal of their current contracts. Sources indicate that several top talents have already been denied raises, with some being offered reduced compensation packages.
The restructuring comes as Thompson pushes to transform CNN into a digital-first news organization, similar to his previous work at the BBC. The network’s linear television ratings have declined significantly, with CNN drawing approximately 5.1 million viewers during recent election coverage compared to Fox News Channel’s 10 million viewers in key broadcasts.
Earlier this year, Thompson announced plans to build a billion-dollar digital business and experiment with artificial intelligence technologies. The initial phase of restructuring in July 2023 resulted in 100 job cuts, representing 3% of the workforce.
The network’s coverage of recent political events has failed to boost viewership. Following the 2024 presidential election, CNN experienced a significant decrease in total daily viewership compared to previous months.
Under the new structure, reporters and correspondents will be expected to take on additional responsibilities, including writing their own scripts and creating content for social media platforms. The network is also planning to unify its U.S., international, and digital divisions under one operational umbrella.
Some veteran anchors, including Jake Tapper and Wolf Blitzer, have already been denied raises, signaling the network’s commitment to cost reduction. Chris Wallace has announced his departure from the network after three years.
Thompson’s strategy includes launching a new direct-to-consumer subscription product by the end of 2024, despite the previous failure of the CNN+ streaming service. The network aims to position itself for future growth while addressing immediate financial challenges through the creation of new revenue streams and the development of FAST channels.