Time Warner, the parent company of CNN and NBCUniversal, said it was planning to cut 6,600 jobs, or 10 percent of its workforce, in the U.S. and Canada in the next year as it prepares to sell its CNN network to 21st Century Fox for $85.4 billion.
It’s the biggest single-day job cut in Time Warner’s history, and it’s the largest in the company’s history.
CNN has been on the chopping block since 2009, when it was sold to Time Warner for $140.7 billion, according to FactSet.
“We are now facing the reality that it will take a significant restructuring to turn around this business,” said Tom Wheeler, president and CEO of CNN.
“And we need to make sure that we have the right mix of people and resources.”
CNN was already facing some challenges.
In the United States, the ratings have been dropping, and some analysts said the network could be struggling to compete in the new era of digital platforms.
The company is facing competition from smaller cable providers and online platforms such as Facebook, which have gained traction in recent years with their content and advertising.
On the other side of the world, the U,C.O., a cable operator in Brazil, is planning to launch a streaming service that will compete with Time Warner in the country.
And the Chinese government has ordered CNN to halt its news coverage.
Time Warner CEO Jeff Bewkes said CNN’s future lies in the future of TV and video streaming services, not just online.
“Our strategy has been to invest in the TV business for a long time, and we’re going to continue to do that,” he said.