CNN is bracing for what insiders are calling a long and painful transformation as parent company Warner Bros. Discovery (WBD) prepares to split into two separate entities by mid-2026. The move will divide the conglomerate’s studios and streaming arm from its traditional cable networks — with CNN landing squarely in the latter category, now viewed by some executives as a “declining asset.”
Under the upcoming split, CNN will be grouped with WBD’s other legacy cable holdings, a segment to be overseen by CFO Gunnar Wiedenfels. Meanwhile, CEO David Zaslav will retain control of the more forward-looking studios and streaming division. Media insiders have interpreted this as a demotion for CNN — a once-dominant force now seen as a financial liability with waning cultural relevance.
“It’s finally the beginning of the long-overdue correction of the Zucker-era excesses,” a source told Fox News Digital, referring to former CNN chief Jeff Zucker’s lavish spending on talent and infrastructure. The implication: expect deep cuts.
CNN’s struggle with declining ratings is well-documented. In May, the network recorded its second-worst performance ever in the 25–54 demographic — a key target for advertisers. Year-over-year losses have been sustained across all time slots, and 2025 is on track to become CNN’s lowest-rated year in the demo.
This has serious financial implications. Estimates from S&P Global’s Kagan suggest CNN’s ad revenue will drop to $499.2 million in 2025, down from $563.9 million in 2024 — despite 2024 being a presidential election year, which traditionally boosts news network revenue.
CNN is likely to undergo massive cost-cutting. One media insider predicted show team staffing cuts of up to 70%, along with reductions in field reporting and executive-level pay. CNN’s talent — many of whom command multimillion-dollar contracts — are expected to face stark ultimatums: accept major salary cuts or take a buyout and leave.
“CNN’s first- and second-tier talent now make, thanks to Jeff Zucker buying their loyalty, about five times what they’re worth on the open market,” the insider said, adding that CNN’s cost structure could be slashed by 50–60% “with no change to ratings or revenue.”
The expected belt-tightening will hit hardest among lower-level employees, many of whom lack union protection. As teams shrink, remaining staff may be forced to shoulder the responsibilities of those laid off.
CEO Mark Thompson has attempted to pivot CNN toward digital-first content in response to linear TV’s collapse, but insiders remain skeptical. CNN.com has not proven strong enough to support a subscription model, and the brand faces stiff competition from free, user-generated content on TikTok, YouTube, and other platforms.
“CNN’s revenue model is in collapse — but it’s a slow death,” a former CNN staffer told Fox News Digital. “There’s nothing but tears on the horizon.”
Media journalist Dylan Byers painted an even starker picture, comparing CNN’s trajectory to HLN (formerly Headline News) — once a viable sister network that eliminated all live programming in 2022. “Over time, [CNN] will look more and more like HLN,” Byers warned, predicting layoffs, diminished perks, degraded offices, and “persnickety indignities.”
Insiders are already rattled. Byers said his inbox was flooded with messages from “addled employees” seeking clarity on the company’s future.
