In the face of low ratings and high costs, CNN is taking drastic measures to improve its margins. This time, the company is leaving its iconic Hollywood building which has become unaffordable for the network. CNN is planning to relocate to a less expensive Burbank building.
CNN Chairman and CEO Chris Licht confirmed the move in an employee Townhall this Tuesday. This year CNN has also announced widespread layoffs as another means to cut costs amid poor performance at the news company.
Deadline reported on the topic:
“CNN chairman and CEO Chris Licht announced the move at a town hall with employees Tuesday, held in the wake of layoffs last week. Puck first reported the news. A CNN spokesperson confirmed the move.”
“The CNN Hollywood offices have long been a part of the area skyline, particularly the lit-up letters from the network logo. The space has been the site of numerous network programs through the years including housing the West Coast studio of Larry King Live.”
Reporting on behalf of Breitbart, John Nolte stated:
“Well, this is what happens when you spend seven years whoring out your credibility to please a gnome named Jeff Zucker. Let me see if I can make sense of what happened…
- Russia Collusion Hoax
- Hands Up, Don’t Shoot Hoax
- Jussie Smollett Hoax
- Covington KKKids Hoax
- Very Fine People Hoax
- Seven-Hour Gap Hoax
- Global Warming Hoax
- Russian Bounties Hoax
- Trump Trashes Troops Hoax
- Policemen Killed at Mostly-Peaceful January 6 Protest Hoax
- Rittenhouse Hoax
- Eating While Black Hoax
- Border Agents Whipping Illegals Hoax
- NASCAR Noose Hoax
- The Georgia Jim Crow 2.0 Hoax
- Trump Assaulted Secret Service Agents and Grabbed Steering Wheel of Beast Hoax
- Frame MAGA for Alleged Paul Pelosi Assault Narrative
…and then you find yourself commuting to a generic office park in Burbank.”
This move to Burbank will be instrumental in CNN’s massive cost-cutting campaign. The measures are likely a move to improve liquidity to service large amounts of debt. Parent company Warner Bros Discovery is straddled with $50 billion in debt currently.
In addition, CNN is laying off many employees and veteran anchors alike as a cost-cutting measure. The company is also looking to shift its programming toward more centrist, non-partisan reporting with less political bias.
In October, Licht gave a warning to employees:
”I have spent the last six months meeting so many of you and diving deep into every corner of the company to understand how you do the incredible work CNN produces every day, how we’re structured, and defining our top priorities. As many of you know, I have also spent much of that time doing formal business reviews with senior staff to identify areas where we should make changes, investments, and reductions to match our future priorities.”
“…There is a lot more to be done. I am writing to you today to say that over the next several weeks, that work will accelerate. 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.”
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