CNN Faces Uncertain Future Amid Corporate Restructuring as Employee Morale Plummets

CNN employees are preparing for significant changes as the network undergoes yet another corporate restructuring initiated by its parent company Warner Bros. Discovery. This new phase is casting a shadow over morale within the newsroom.

One CNN insider shared their thoughts on the current atmosphere, stating, “The mood remains really grim. People are uncertain about the future.” This sentiment reflects the anxiety felt by staff as WBD announced its plan to separate its studios and streaming divisions from its cable networks, including CNN. The spinoff is set to culminate next year, creating a new entity tentatively named Global Networks.

Gunnar Wiedenfels, WBD’s CFO, will spearhead this new structure, which is already generating concerns among CNN employees. According to the same source, expectations are that CNN could be sold to a buyer prepared to invest in its future. They noted, “Any sale can be made at any time. That’s the bottom line.”

The corporate split comes as a relief to some, allowing CNN to carve its own path amidst ongoing financial challenges. Nonetheless, it will inherit a significant portion of Warner Bros. Discovery’s debt burden. As a result, Wiedenfels is anticipated to enforce stringent budgetary measures.

Financial Pressures Amplify Concerns

Another staff member expressed apprehension regarding impending cuts, remarking, “They’ve clearly communicated that more layoffs are likely. Gunnar focuses on ‘efficiency.’ Since we don’t have a streaming service yet, it’s hard to envision this not getting worse, especially with a new service on the horizon this fall.”

CNN anticipates launching a streaming platform aimed at enhancing its market presence, yet internal fears linger. The staff member continued, “His role does not involve growth. This organization is facing declining revenue and is primarily focused on managing cash flow. The split of assets underscores this situation.”

An Evolving Corporate Landscape

Historically, CNN has navigated multiple ownership changes, from Time Warner in the 1990s to AOL in the early 2000s, and more recently, AT&T until its spinoff led by CEO David Zaslav in 2022. Each transition marked a new chapter in CNN’s ongoing evolution.

Under Zaslav’s direction, Mark Thompson, a seasoned executive from the BBC and The New York Times, took the reins as CNN’s CEO in 2023. Thompson has publicly championed efforts to transform the network for the digital era throughout his tenure. However, frustration within the newsroom appears to be directed more towards WBD’s leadership than towards Thompson.

Staff Perspectives on Challenges

One staff member did not hold back their feelings, claiming, “Zaslav killed this place. The debt burden of the new CNN structure is daunting, though it could signify a fresh start. Unfortunately, Zaslav’s years have been disastrous for our organization.”

Industry observers, such as Puck correspondent Dylan Byers, have expressed bleak predictions for CNN’s future, implying it could fizzle like HLN, which has virtually disappeared from the media landscape. Nonetheless, a third staff member shared a differing viewpoint, indicating that detractors might be misinterpreting underlying trends impacting cable news.

“I’m contemplating my next steps when the whole thing collapses, but I cannot predict when that will occur,” the third staffer admitted. “If we go under, I’ll find another job, possibly one that pays more or less. At the end of the day, it’s just a job, isn’t it?”

A Glimmer of Hope Amid Challenges

Despite the uncertainty clouding their future, some staff members retain a measure of optimism regarding CNN’s potential. One employee asserted, “I believe CNN can still become a relevant and powerful brand. In my view, CNN is a brand akin to Nike. If we allow it to falter, that will be a decision driven by management, not an inevitable outcome.”

While no official comments have been made by CNN representatives, Warner Bros. Discovery did not respond to inquiries regarding the restructuring process. This corporate saga unfolds at a crucial juncture for CNN, which faced its second-lowest ratings ever in May for its target demographic of adults aged 25 to 54. The network is projected to record its lowest ratings year within this category.

As CNN moves forward, the struggles of its staff reflect broader industry challenges, suggesting that the road ahead may be as tumultuous as the past few years have been.

Fox News’ Brian Flood contributed to this report.