President Trump's archenemy in the Fake News Media is about to experience some significant downsizing in its digital operation. Vanity Fair's Joe Pompeo reports that he's learned the network is "targeting big savings on the digital side, with as many as 50 jobs around the globe scheduled to be eliminated this week."
So is CNN somehow one of the only major companies not enjoying the "Trump Boom"? Not really. In fact, the network appears to be doing quite well in the Trump economy and has particularly benefited from the "Trump Bump" felt by many left-leaning outlets in the wake of The Donald's stunning upset of the formerly "inevitable" Hillary Clinton.
According to Pompeo's sources, CNN's downsizing is really about "rightsizing" in preparation for AT&T's takeover of CNN's parent company, Time Warner. CNN execs see an opportunity to save some big money by "re-thinking at least some elements of its digital strategy."
While the exact number of employees CNN is reportedly "targeting" is still "in flux," the bigger picture is more certain: CNN's digital team is going to see some significant reductions. Pompeo provides some more details:
The cuts will affect employees who work in premium businesses including CNN Money, video, product, tech and social publishing, [people familiar with the matter] said. Several high profile digital initiatives are being scaled back, including CNN’s virtual reality productions and its efforts on Snapchat, where CNN recently nixed a live daily webcast after just four months. CNN’s business-oriented MoneyStream app, as BuzzFeed reported earlier this month, is in the gutter as well. A team that works on the digital extensions of documentary-style TV shows, such as Anthony Bourdain’s Parts Unknown and Lisa Ling’s This is Life, as well as the Brooke Baldwin series American Woman, is also being reorganized.
As Pompeo underscores, the "rightsizing" of CNN's digital side is a rather jolting shift in the direction of the company, which has been trying to grow its digital footprint aggressively in recent years. Like Vice and BuzzFeed, however, CNN has failed to meet revenue goals, missing them by "tens of millions of dollars," though an insider says the network still managed to stay in the black in its digital operation.
One high-profile digital fail for CNN that recently made headlines is the network's partnership with YouTube star Casey Neistat. CNN acquired Neistat's app Beme for $25 million, but has since parted ways with Neistat and shut down Beme.
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