Massive Layoffs Hit US Networks

Two of the major media players in the United States CNN and NBC have announced major cuts in their news service in order to focus on digital platforms.

CNN and NBC are both major American news networks that provide coverage on various topics including U.S. and world news, and weather.

CNN announced Thursday it is cutting about 6% of its total staff, or about 210 employees, as it refocuses the business around a global digital audience.

CNN CEO Mark Thompson announced the job losses in a memo to staff Thursday, confirming CNBC’s reporting Wednesday that cuts were coming. In the memo, Thompson noted CNN doesn’t expect total headcount to fall “much” this year because the company plans to invest $70 million in new digital plans.

“I know that whatever the total number of job losses, the impact on the individuals involved can be immense,” Thompson wrote in the memo, obtained by CNBC. “The process of change is essential if we’re to thrive in the future, but I both acknowledge and regret its very real human consequences.”

The layoffs come as CNN is rearranging its linear TV lineup and building out digital subscription products. The cuts will help CNN lower production costs and consolidate teams, according to people familiar with the matter, who spoke on the condition of anonymity to discuss nonpublic thinking. Certain shows that are produced in New York or Washington may move to Atlanta, where production can be done more cheaply, said the people.

For the most part, the job cuts won’t affect CNN’s most recognizable names, who are under contract, said the people. CNN has about 3,500 employees worldwide.

A CNN spokesperson declined to comment beyond Thompson’s statement.

NBC News is also planning cuts later this week, according to people familiar with the matter who spoke on the condition of anonymity to discuss nonpublic changes. While the exact number couldn’t be determined, the job losses will be well under 50, two of the people said. A spokesperson for NBC News declined to comment.

Both news organizations waited until after the U.S. presidential inauguration to make the cuts. The news media landscape is in transition as fewer people watch linear TV and more consume their news on streaming services and through social media.

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