CNN to fire hundreds of employees as ratings tank: Report
What's the story
After suffering a major ratings drop during the recent Presidential Election Day coverage in the US, CNN is gearing up for major layoffs, as per Puck News. The network's president Mark Thompson is expected to carry out the layoffs at various levels of the organization. Hundreds of staffers are expected to be impacted. The decision comes after CNN underperformed against rivals MSNBC and Fox News, during last week's coverage.
Staff reduction
Layoffs to focus on TV production teams
The layoffs are reportedly going to impact CNN's television production teams the most. Thompson, who took over last year after Chris Licht's exit, thinks these roles might not be necessary in the new digital-first world. Reportedly, this decision has created a high-stress environment among the network's employees.
Salary cuts
Thompson may target high-salary anchors
Thompson, who has previously been the CEO of The New York Times and the BBC, is also mulling deep cuts to the hefty salaries of CNN's primetime anchors. The group includes famous personalities such as Anderson Cooper, Erin Burnett, and Kaitlan Collins. Cooper reportedly makes up to $20 million a year, while Burnett and Collins earn around $6 million and a more modest $3 million, respectively.
Departure
Chris Wallace departs amid changes
In yet another sign of the ongoing changes at CNN, Chris Wallace announced his departure from the network on Monday. Wallace's three-year tenure was marred by low ratings and internal discord within the company's board. Last month, it was reported that Thompson had asked Wallace and other top stars like Jake Tapper and Wolf Blitzer to accept pay cuts.
Restructuring
Reorganization plan and division cuts
As part of Thompson's restructuring plan, CNN plans to assign more tasks, currently performed by producers and production assistants, to reporters and correspondents. The network also plans to streamline redundant work and possibly downsize or even shutter various divisions. Earlier this year, CNN had already laid off around 100 employees, which made up about 3% of its workforce.
Ratings slump
CNN's ratings hit a new low on election day
The upcoming changes at CNN come after disappointing ratings for the network on Election Day, a day it has traditionally dominated. CNN only attracted 5.1 million viewers in prime time last Tuesday, as per Nielsen data. Meanwhile, Fox News drew in 10.3 million viewers in the same time slot while MSNBC's coverage averaged six million viewers, surpassing CNN for the first time ever.