With a new boss, a looming spinoff, and tighter expense policies, many in the newsroom are concerned about what comes next. CNN has a third parent company in seven years, and no one knows where it will go next.
Will CNN survive yet another owner?
Tensions are rising in the newsroom as veteran employees leave, expense accounts are reduced, and a looming spinoff shakes things up. It is going through yet another difficult period.
CNN is in crisis mode, as employees prepare for a corporate spinoff and budget cuts under new boss Gunnar Wiedenfels. Anxiety over cost-cutting following the spinoff causes two CNN executives to leave the struggling network, as per a report by Status News.
What will new cost-cutting mean for CNN?
Gunnar Wiedenfels, the CFO of WBD and an infamous cost-cutter, will lead the new business, Global Networks.
He may take a clinical approach to cost cutting at the company. According to Status, the network also intends to reduce expense accounts starting July 1 by requiring employees to provide receipts for source meetings and travel. Regular business expenses like travel and source meeting costs will be scrutinized.
Why are CNN executives exiting?
Anchors and correspondents earning multimillion-dollar salaries will likely lose significant amounts of money if their deals are renewed. Expensive foreign bureaus that helped CNN become the news outlet of choice may also close.
According to Oliver Darcy’s Status newsletter, Laura Bernardini, the vice president of domestic news, and Jacque Smith, the vice president for digital video, are both departing from CNN, as per a report by The NY Post.
As CNN is separated from parent company Warner Bros. Discovery and bundled with other legacy cable networks, many staff members are preparing for yet another wave of disruption.
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In a recent memo to employees, Wiedenfels expressed optimism about the network’s future, describing himself as a “deep admirer of CNN” who watches its programming “around the clock,” according to Status.
According to Darcy’s newsletter, the subject line of the email, “Excitement for the Future,” did little to ease anxiety. Employees are afraid that the spinoff will force them to work in what is known as WBD’s “Sh-t Co.” wing, as per a report.
One CNN employee told Darcy, “Everyone is tired and cautious, and there is so much change that we don’t understand what direction the company is going in.”
What is the new boss’s plan for CNN?
With each reorganization bringing a new strategy and a new set of executives with their own agendas, CNN’s separation from WBD will be the third parent company change in seven years.
After a few years of ignoring streaming, WBD has now changed its strategy, and CNN plans to launch a new standalone streamer this fall. Zaslav and Wiedenfels have also invested $100 million in the company’s digital future and brought back many of the original CNN+ executives.
When the linear assets spin off into the upcoming Global Networks, Wiedenfels is making every effort to reassure staff members that the digital revitalization plan he and Zaslav started will continue, as per a report by Status.
FAQs
Why are CNN employees concerned?
Cost cuts, a looming spinoff, and high-profile departures have left employees fearing more changes and an uncertain future.
What comes next for CNN?
It will be integrated into Warner Bros. Discovery’s “Global Networks,” which will prioritize cost-efficiency and adaptability to the new media era.
