One year ago CNN was boasting about an ambitious digital strategy, but now, according to Vanity Fair, they are planning to layoff as many as 50 people.
The layoffs are expected to happen this week and will hit CNN staff around the world who work on the company’s businesses like CNN Money, video, product tech and social publishing, Vanity Fair reported. The number of layoffs has not been made clear.
CNN will cut some of their high profile digital initiatives like their virtual reality and Snapchat production efforts. And the team that produces digital extensions for the network’s documentary-style shows is apparently going to be reorganized.
CNN missed their recent revenue projections, as did a number of other digital brands. But CNN is still profitable. It employs thousands of people around the world and makes $1 billion in annual profits. In the last 18 months, CNN hired more than 200 new employees.
The coming layoffs most likely indicate that CNN may be tempering its digital ambitions and creates a level of uncertainty as the company employees wait to see if AT&T is able to acquire its parent company.
A CNN representative told Vanity Fair that some “activities” would be ended to reallocate resources.
“Not every new project has paid off so we will stop some activities in order to reallocate those resources and enable future experimentation,” CNN’s Matt Dornic told Vanity Fair. “Organizations that do not make big bets and continuously evolve are the ones that fail,” Dornic said.
CNN has been in a battle with President Trump since before the 2016 presidential election. The company is one of the major assets in AT&T’s organized takeover of Time Warner for $85 billion. The Justice Department sued to try and stop the deal last year. A trial will begin on March 19th to decide whether the buyout will be allowed to happen.
Do you think these recent layoffs have anything to do with the feud CNN has with President Trump?
Credit: The Hill