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CNN has unveiled plans to lay off hundreds of employees as the television network’s chief executive warns of “profound and irreversible changes” in the way viewers engage with news.

In a memo to staff Thursday, chief executive Mark Thompson said 200 jobs, or about 6 percent of CNN’s workforce, would be affected as CNN’s traditional cable TV business suffered a severe drop in viewership.

The layoffs come as part of an overhaul as the media group looks to a future beyond traditional television.

Thompson said the total number of people is not expected to fall because the company is investing $70 million in its digital business, which is expected to reach $1 billion in revenue by 2030.

CNN is investing in a TV-like streaming subscription service available on devices around the world, which it hopes will offset the decline of traditional linear TV programming. The group expects hundreds of new roles to be created as a result, with the first 100 positions to be posted and filled in the first half of 2025.

“Some of that money will be in product and technology, but a lot will also go into new high-quality journalism and storytelling”, said Thompson, in a memo seen by the Financial Times.

CNN is in talks with distribution partners to launch the streaming service later this year.

Thompson, who TEACH The chief executive in 2023 with a mandate to turn around the fortunes of the ailing cable network, has put digital growth at the center of his new strategy as the industry faces the challenge of the long-term decline of traditional television.

The broadcaster is fighting a ratings war against Fox News on the right, and MSNBC on the left. The trend was revealed this week as CNN attracted only a fraction of the audience it once enjoyed for presidential inaugurations.

Just 1.7mn households watched Trump’s inauguration on CNN between 11:30am and 1pm on Monday — up from 10mn in 2021. By comparison, more than 10mn viewers watched Rupert Murdoch’s inauguration Fox News.

Monday’s inauguration television viewing total was the lowest in a decade. Fewer than 25 million Americans tuned in to watch Trump take the oath of office as US president, down from nearly 34 million who watched Biden’s inauguration in 2021 and 31 million who watched Trump’s ceremony in 2017, according to Nielsen data.

“The changes we are announcing today are part of an ongoing response by this great news organization to the profound and irreversible changes in the way audiences in America and around the world using the news,” Thompson said. “From linear to digital, fixed to mobile, traditional long-form broadcast in any number of different formats and use cases.”

He added that the shake-up was necessary “to ensure CNN’s future as one of the world’s largest news organizations”, adding that “America and the world need high-quality, fair-minded, reliable sources.” in the news more than ever”.

Thompson also announced further changes to CNN’s newsroom, which last year brought in Alex MacCallum, a former New York Times lieutenant, to lead the digital transition.

In the memo, Thompson said MacCallum has built its first direct-to-consumer subscription product, video carousels on digital platforms and refreshed the CNN.com site.

Thompson flagged additional plans for digital video, the launch of CNN’s first lifestyle-based service and a new premium digital advertising platform.

He also announced changes and cost-cutting plans for the broadcaster’s domestic and international schedules.