CNN: In Trouble

Chris Licht, chairman of CNN, sent a memo to staff Wednesday, writing that a “noticeable change” is on the way. The memo came out just a few hours after CNBC’s Alex Sherman reported that budget cuts and layoffs are expected before year’s end.

In his memo to staff, Licht wrote, “There is widespread concern over the global economic outlook, and we must factor that risk into our long-term planning. All this together will mean noticeable change to this organization. That, by definition, is unsettling. These changes will not be easy because they will affect people, budgets, and projects.”

Sherman wrote, “Licht doesn’t have a specific order to cut a certain amount of jobs or save a specific percentage of spending. But he’s planning to cut parts of CNN that have become bloated over time, said (sources).”

The New York Times’ Benjamin Mullin wrote, “CNN will have operating expenses of about $882 million this year, according to estimates from S&P Global Market Intelligence. Even a single-digit percentage cut from that budget would shave millions of dollars and potentially dozens of jobs from the network.”

It has been quite the tumultuous year for CNN. It started with Jeff Zucker in charge, but he eventually was let go after failing to disclose he was in a relationship with one of his top executives. CNN ultimately was a part of a sale and is now under the Warner Bros. Discovery umbrella.

Low viewership shut down the ambitious CNN+ streaming service less than a month after it was launched. And CNN seems to be shifting its focus to become more centrist in its coverage, which has led to high-profile dismissals from the network, including media reporter and “Reliable Sources’” host Brian Stelter.

In addition, the network recently shifted primetime anchor Don Lemon to a revamped morning show and  is looking to name a permanent replacement in primetime for Chris Cuomo, who was fired late last year for helping his brother, former New York Gov. Andrew Cuomo, fend off multiple sexual misconduct allegations.

Sherman wrote, “(Licht) wants CNN to cover stories more like a newspaper and less like Politico, according to people familiar with his thinking. That means more stories that an average family would discuss around the dinner table and less obsessive focus on politics. He’d like to cover more business, technology and even sports, said the people, who asked not to be named because the discussions were private.”

Here’s a key point: viewership is down.

So to sum up, it’s been a topsy-turvy year that still has a few twists and turns left. Sherman reported that, overall, Warner Bros. Discovery could eliminate more than 1,000 jobs.

Licht took over in May and has spent the past several months delving into the business, meeting with other CNN executives and working on a game plan for the future.

Licht tried to put a positive spin in his memo, writing, “We 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.

thanks Let me be clear: I will not allow these changes to affect our position as the world’s leading news source, and we will continue to invest in growth areas. When we conclude this process, CNN will still be the largest, most-respected news gathering organization in the world. We will continue to cover any story, anywhere, any time — with more resources than anyone else. Full stop.”