Despite raking in some of the highest revenues and ratings in its history, cable news giant CNN has announced plans to lay off dozens of employees.
According to Vanity Fair, The Cable News Network’s “daily rapture of the Donald Trump White House,” is credited for the increase in profits, known as “The Trump Bump.”
However, it would seem that even a ratings bump, isn’t enough to withstand the encroaching field of online media.
The Network confirmed that cuts would be made in the digital departments, according to The Wrap.
Although, Vanity Fair originally reported that as many as 50 jobs were on the line.
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CNN has reported that the scheduled cuts are part of “restructuring,” meaning some employees would move to new roles.
Cuts are expected to be made later this week, according to The Wrap.
Vanity Fair reported that the “restructuring” could be linked to AT&T’s acquisition of CNN’s parent company; Time Warner.
The report indicates that Time Warner is looking to save on the digital side of the lucrative business.
Do you think CNN is suffering in the digital media landscape?
Areas looking at potential cuts could be CNN Money, video, product, technology, and social publishing.
Additionally, several digital initiatives are being reduced, such as the network’s virtual reality productions.
Perhaps most notable though are CNN’s Money Stream app and Snapchat efforts.
In December the company ended its Snapchat news broadcast known as “The Update” according to The Wall Street Journal.
“We’ve been transparent about our strategy,” Matt Dornic, a representative for CNN told Vanity Fair.
“In order to innovate, grow and experiment, we’ve added more than 200 jobs in the past 18 months,” Dornic continued. “Not every new project has paid off so we will stop some activities in order to reallocate those resources and enable future experimentation.
“Organizations that do not make big bets and continuously evolve are the ones that fail,” he added.
The revelations are a stark contrast to the network’s assertion just months ago when CNN was touting their massive share of the digital marketplace
“CNN Digital will bring in more than $370 million for 2017 — its highest revenue in history,” a CNN spokesperson said, according to Buzzfeed.
“The company remains the #1 digital news source in the nation, handily beating all its competitors, including BuzzFeed, in users, video and even millennial reach. There are more than 660 people working for CNN Digital and there are no plans for freezes, cutbacks or layoffs of any kind. In fact, we are continuing to invest.”
However, Buzzfeed noted the that changes in online ad revenue, combined with a difficult political atmosphere has made business increasingly difficult in the digital environment.
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