CNN is laying off 6% of its workforce, or roughly 200 staffers, as the cable network aims to transform its newsroom into a digital-first operation.

CNN parent company Warner Bros. Discovery (WBD) plans to invest $70 million into the network's revamp, which includes a new direct-to-consumer streaming product and a focus on premium digital ad experiences. CNN also plans to refresh its website, undergo a major pivot into digital video, and launch a first-of-its-kind lifestyle-oriented digital product. 

CNN CEO Mark Thompson said in a staff memo obtained by Yahoo Finance that jobs will be added as part of the effort and that despite the job cuts, the network doesn't expect headcount to decline much this year. 

"Our objective is a simple one: to shift CNN’s gravity towards the platforms and products where the audience themselves are shifting and, by doing that, to secure CNN’s future as one of the world’s greatest news organizations," Thompson said. 

Shares of WBD were little changed on the news. 

CNN previously experimented with a direct-to-consumer streaming platform, launching CNN+ in 2022 before shuttering the service just a few weeks later. Since then, struggles at the network level have become more apparent.

According to the latest figures from Nielsen, cited by the Wall Street Journal, CNN averaged 578,000 prime-time viewers in the three months through December. That's a 75% decline compared to its peak in the fourth quarter of 2020.

Last summer, Warner Bros. Discovery and competitor Paramount Global (PARA) took a collective $15 billion hit on the value of their respective cable businesses.

"Am I disappointed that the trends in the linear business haven't been a little better?" WBD CEO David Zaslav said at the time. "There has been talk about recovery a year, a year and a half ago. It hasn't really happened. It is what it is. We're managing this as best we can." 

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The pressure from deteriorating linear networks, coupled with heavy debt loads, has forced legacy media giants to cut costs wherever they can — hence the massive restructuring and layoffs the industry has seen across its ecosystem. 

Rumors have swirled when it comes to future strategic options, which could include sales and splits. 

Warner Bros. has been at the center of M&A rumors after its two-year post-merger lockup period officially ended last year. The future remains unclear after the loss of key NBA media rights and the recent disbandment of Venu Sports, the now-canceled sports streaming service WBD was set to launch with Disney's ESPN (DIS) and Fox (FOXA).

Bank of America analysts recently laid out possible strategic options, including separating the company's digital streaming and studio businesses from its legacy linear TV unit. Zaslav has previously said the company is exploring "all things operationally and strategically."

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

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