Warner Bros. Discovery’s (WBD) popular news channel, CNN, is planning to lay off hundreds of employees, according to CNBC reports. This move is part of a strategy of reducing production costs and shifting focus to a global digital audience. The layoffs, expected to start this week, are a significant step in reshaping CNN under CEO Mark Thompson’s leadership.
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Meanwhile, Comcast’s (CMCSA) subsidiary, NBC News, is also reportedly planning layoffs. The company is expected to reduce its workforce by fewer than 50 employees, with the announcement likely coming later this week.
CNN Restructures Operations and Expands Digital Focus
The layoffs come as CNN reshapes its traditional TV lineup and expands its digital subscription offerings. As part of this restructuring, the company plans to relocate some shows from New York and Washington, D.C., to Atlanta. However, according to reports, the job cuts will not affect CNN’s well-known personalities who are under contract.
At a recent town hall, Thompson shared that Warner Bros. Discovery has invested over $70 million to support CNN’s digital efforts. Some of this money will be used to hire new employees in key areas like data science and product development, where the company sees opportunities to grow.
In addition to these structural changes, CNN is adjusting its editorial approach. Mark Thompson has advised top journalists like Jake Tapper and Anderson Cooper to avoid personal opinions when covering major political events, such as President Donald Trump’s inauguration. This reflects a shift towards impartial reporting and a focus on future developments.
These layoffs show the pressure on traditional media to address declining viewership, while finding ways to handle financial challenges and shift toward digital growth.
Which Media Stock Is the Best Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that CMCSA stock has the most upside potential. CMCSA’s price target of $48.95 per share implies almost 32% upside potential. Meanwhile, for WBD stock, the average price target of $12.43 per share equates to almost 24% upside potential.
