Media organizations are also to be dissolved; CNN announced the lay-off

The layoffs spread to the media sector, following Metta, Twitter and Google. CNN notified employees Wednesday that the layoffs had begun. The layoffs at global news network CNN will affect hundreds of employees. Moreover, it will be the biggest layoff ever in the organization. Information about these layoffs was reportedly provided by Chris Licht via an all-staff memo. Licht took over as CNN’s chief executive in May.

Licht described the move as the first “gut punch” for the global news network. A CNN report on the layoffs adds. Saying goodbye to any one member of the CNN team is incredibly difficult, the chief told staff. Even before the layoffs, Licht had informed employees that some unsettling changes were coming to the firm.

According to Licht’s memo, the company will announce a limited number of layoffs and largely salaried employees, a CNN report detailing the layoffs added. “This will be a difficult time for everyone,” the Leach memo reportedly said. It is also possible to exchange information related to layoffs from today.

While reports of CNN layoffs have surfaced, it’s not clear how many employees were affected. The layoffs are also reported at media houses as part of an effort to cut costs amid growing economic uncertainty.

Other media organizations are also taking a number of cost-cutting measures to better position themselves in the economic downturn. Last week, Disney ( DIS ) said the company needed to restructure. And AMC Networks ( AMCX ) announced Tuesday that it will cut 20% of its workforce. Social media companies such as Facebook’s parent company Metta, which depend on advertising revenue, have also implemented layoffs in recent months.

CNN, still making billions in profits, during covid
The media was spared from the losses incurred in the industry. Before Covid, the last cut in the organization was in 2018 when fewer than 50 people lost their jobs as the company restructured its digital business.

After Licht took over as head of CNN, he conducted a months-long review of the business. That review led to the identification of changes that needed to be made at the company, Licht said in October. CNN has made minor cuts to its business operations over the past several months. Therefore some changes have already been implemented.

Employees affected by this week’s layoffs will be notified “either through an in-person meeting or via Zoom, depending on your position,” Licht said in his all-staff memo Wednesday. Word Innovation, the parent company of news aggregator Dailyhunt and short-video platform Josh, was recently reported to have laid off around 150 employees. It was also recently in the news that Indian news organization Zee Network has decided to shut down its Hindi news channel Zee Hindustan. These reports indicate that the series of layoffs initiated by tech firms has also affected the Indian media industry.

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