Some big changes are coming to CNN, which is preparing to undergo a major cost-cutting operation. Exclusive reports from The Wrap reveal that the network’s top leadership is planning to slash the salaries of some of its most well-known anchors in a bid to rein in its budget.
CNN CEO Mark Thompson is said to be spearheading this “revolution” at the news network, which will involve cutting some of its largest salaries. And we’re not talking about small cuts here – top earners like Anderson Cooper, Wolf Blitzer, Jake Tapper, and Chris Wallace are speculated to see significant pay decreases.
Now, why is this happening? Well, Thompson, a former executive at the British Broadcasting Corporation (BBC) and The New York Times, seems to be taking a page out of the BBC’s book. The BBC is funded by a license fee, not advertising, and its top stars are paid just a fraction of what American anchors earn.
But here’s the catch – many of the anchors at CNN are currently under long-term contracts that don’t expire until after the next presidential election. So, it looks like these pay cuts won’t happen overnight. However, with the network’s poor ratings and failed subscription service, CNN+ collapsing after just a few months, Thompson seems determined to make some major changes.
Media experts and former staffers are already predicting that if things don’t turn around, CNN employees can expect to see significant salary cuts in the next five years. Rich Greenfield, a partner and media analyst at LightShed Partners, has warned that “your compensation is going to go down dramatically if you work at CNN.”
New CNN CEO Mark Thompson is poised to slash the more than $50 million in anchor salaries as he starts to transform the cable network into a digital-first platform that more resembles what he did at the BBC, The Wrap reported Thursday. https://t.co/NP9gxNq8wZ
— NEWSMAX (@NEWSMAX) February 16, 2024
This news comes at a difficult time for the network, which has been struggling to compete with its rivals like Fox and MSNBC. With its ratings never fully recovering from the highs of the Trump presidency and its failed attempts to generate subscription revenue, CNN is facing some tough choices.
Corporate media is undergoing major downsizing & implementing cost reductions.
It’s not a good time to be in the legacy news media. The market is finally making its voice heard.My message to them: You did it to yourselves. Half the country distrusts you. https://t.co/CO1R2s3kDo
— Mark Mendlovitz (@MendlovitzMark) February 16, 2024
In fact, just last month, we saw the Los Angeles Times announce the layoff of 115 newsroom employees due to financial struggles. And last year, The Washington Post also confirmed layoffs of 240 employees, despite the financial backing of its billionaire owner, Jeff Bezos.
The big question now is – will these changes be enough to secure the future of CNN? Only time will tell. But one thing is for sure – Thompson is determined to turn things around and create a “digital-first transformation” at the network.
