CNN begins layoffs in what CEO says will be a "blow" for the network

(CNN) --

CNN informed its employees Wednesday that it had begun layoffs, a move that is expected to affect hundreds of workers at the global news network and mark the organization's deepest cuts in years.

Chris Licht, who took over as CEO of the chain in May, described the cuts in a memo sent to all staff as a "blow" to the organization, telling employees that "it's incredibly hard to say goodbye to any member of the CNN team, it is much more difficult when there are several of them.

Company employees had been anxiously preparing for the layoffs since Licht informed them last month that "disturbing" changes were coming.

Licht said the company would notify a "limited number of people," mostly paid taxpayers, of his layoff on Wednesday.

He said the company will "notify affected employees" this Thursday.

Licht added that when the cuts are complete "there will be more details."

“This will be a difficult time for everyone,” Licht said candidly in his memo.

CNN declined to specify on Wednesday exactly how many employees would be affected by the layoffs.

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The layoffs come as media companies face brutal economic headwinds that have hit the advertising industry.

Licht noted in October, when he said big cuts were looming, that there was "widespread concern about the global economic outlook" and that CNN "must factor that risk into its long-term planning."

Other media organizations have also cut costs as they work to better position themselves for tough economic times.

Disney said last week that the company needed to restructure and AMC Networks announced Tuesday that it would cut 20% of its staff.

Social media companies like Facebook parent Meta, which are equally dependent on ad revenue, have also made layoffs in recent months.

CNN, still posting hundreds of millions of dollars in profit, was spared cutbacks during the pandemic that wreaked havoc on the industry.

The last major cuts to the organization were in 2018, when fewer than 50 people lost their jobs as the company restructured its digital business.

The cuts to the organization also come after CNN's former parent company WarnerMedia merged with Discovery earlier this year, creating a media giant with billions of dollars in debt and a need to cut costs. in all fields.

The merger had just been completed in April when the company announced it was shutting down the CNN+ streaming service a month after its launch.

David Zaslav, chief executive of Warner Bros. Discovery, the company that was formed when WarnerMedia and Discovery merged, has promised investors he will seek more than $3 billion in savings from the merger.

After Licht took over as CNN director, he began a months-long review of the business.

That review led him to identify changes that should be made, Licht said in October.

Some of those changes have already been implemented, as CNN has made smaller cuts to parts of its business in recent months.

Licht said in his memo to all staff Wednesday that employees affected by this week's cuts will be notified "via an in-person meeting or via Zoom, depending on their location."

“At those meetings, they will receive specific information about the notice period or any severance that would apply, and their anticipated last day,” Licht said.

“I want to make it clear that everyone who is eligible for the bonus will continue to receive their 2022 bonuses, which are determined by company performance.”

Licht acknowledged that the cuts "will affect both our colleagues who leave and those who stay" and promised to provide employees with "resources designed to support them."

“Let's take care of each other this week,” Licht said.

CNN