Crisis at CNN, Spotify layoffs – weekly news digest

CNN has been gripped by an internal crisis over the past week, following a disastrous profile of its CEO Chris Licht published last Friday by The Atlantic, that culminated in Licht’s departure as the network’s chief executive.

The 15,000-word piece, which draws on many months worth of access to Licht and other CNN insiders, has been a massive PR blunder for the network. Author Tim Alberta documented “the meltdown at CNN”, including Licht’s missteps like failing to gain trust of CNN employees, as well as his obsession with press coverage and with his predecessor Jeff Zucker, whom Licht replaced a year ago.

The damning profile didn’t come out of nowhere. The dissatisfaction with Licht within CNN has been brewing over the past months, caused by plummeting ratings and programming missteps like failing to fill the primetime 9pm slot on the air with a programme that would draw consistent interest from viewers. CNN’s recent town hall interview with Donald Trump was also harshly criticised by media insiders.

After almost a week of internal crisis at CNN, Puck and The New York Times reported on Wednesday that Licht would depart as CEO of CNN. Puck’s Dylan Byers reports that the network’s veteran executive Amy Entelis would step in as interim chief executive. Detailed circumstances of Licht’s departure are yet to be reported as of Wednesday afternoon European time.

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Spotify is making cuts across its podcasting business. According to the company’s announcement published on Monday, it would combine Parcast and Gimlet studios into a single Spotify Studios division. The move will mean laying off approximately 200 people.

One of the world’s biggest audio and podcasting companies, Spotify significantly expanded in the podcasting industry in recent years with acquisitions of podcast companies like Gimlet and multi-million dollar deals with  high-profile podcasters like Joe Rogan. However, now Spotify is aiming to cut back on the costs as market conditions have shifted. 

In recent months Spotify already cancelled multiple shows and conducted broader layoffs across the company. “After the company reported a net loss of around $248 million for its first quarter this year, Spotify vowed that its era of big spending on podcasts is over and promised to operate more efficiently this year”, The Verge writes.

Source of the cover photo: https://depositphotos.com/home.html

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