CNN announced that they are doing a $20 million dollar expansion that will cost 50 people their jobs.
Which maybe the first time we heard of an expansion leading to layoffs.
CNN says it is planning to pour $20 million into its digital products as it looks to expand its reach while also fending off the growth of a new crop of online media companies.
Andrew Morse, executive vice president of editorial of CNN U.S. and general manager of CNN Digital Worldwide, said the new investment will be focused on three key areas: Web video, mobile and global expansion. CNN plans to hire more than 200 new staffers, including a mix of journalists, video producers, analytics and audience development experts and mobile product developers.
However, as a result of these changes, more than 50 CNN staffers are set to lose their jobs. This group will include people who have focused on CNN’s traditional desktop website, several generalist reporters and editors as well as employees from the company’s product, technology and operations, said people familiar with the matter.
“The world has changed,” Morse said. “Scale alone is not enough. We can’t fight the last war. The one for the desktop homepage--we already won.” He said the model of digital news that tries to “replicate a wire service” is falling out of date, as native digital companies experiment with other types of journalism. “We need to be as nimble and digitally savvy.”