CNN CEO Chris Licht has warned employees layoffs are on the way as part of a $1 billion cost-cutting operation.

In a memo, Mr Licht stated that CNN is exploring ways to cut expenses, which “will mean noticeable change to the organization. 

He said: “That by definition is unsettling and will affect people, budgets and projects.”

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The CEO took over CNN in April and said cuts will be made by the end of the year.

Licht’s memo did not go into detail about the reduction but stated his senior staff “will be strategic in this process and will minimize the impact on our core newsgathering operation and Digital, both of which have already executed smart changes.”

CNN parent Warner Bros. Discovery cautioned of major costs involved with downsizing the firm in a Securities and Exchange Commission filing.

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This includes the cancellation of shows and movies, as well as the provision of severance payouts to staff who have been laid off.

Warner Bros. Discovery CEO David Zaslav has told Wall Street that the business will be proactive in cutting costs in order to meet its financial targets.

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In April, telecommunications behemoth AT&T sold its entertainment and media portfolio to Discovery.

That includes HBO, the Warner Bros. film and television studio, CNN, TBS, and Turner Classic Movies.

Since April, the company has fired hundreds of staff in successive waves.

In August, HBO reduced 14 percent of its workforce, around 70 people.

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The Warner Bros. TV studio axed more than 80 employees earlier this month.

The film studio is set to make cutbacks next month.

While CNN is highly lucrative, particularly for a new company, it is under pressure from falling subscription fees as users abandon paying TV packages.

Source: Los Angeles Times

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