Insider says that CNN management is deeply worried about the outcome of the defamation suit as the trial intensifies.
CNN is being sued for defamation by Zachary Young over a 2021 on-air segment about him.
The ongoing defamation suit involving CNN and the potential for a substantial payout to the plaintiff is a major concern for network management, as it comes at a time when the network is already facing low ratings and impending staff cuts, according to insiders.
As CNN prepares to cover the second Trump presidency, it is facing declining viewership and impending layoffs.
In a public defamation trial, Zach Young alleges that a 2021 segment on the "black market" during the Biden administration's military withdrawal from Afghanistan smeared him by implying he illegally profited.
"According to a CNN insider, upper management is concerned about the outcome of the situation, not the exposure. The damning information, including text messages, has already been published. Therefore, the insider believes that CNN is likely to receive a significant payout at the end of this."
CNN's "The Lead with Jake Tapper" segment on November 11, 2021, harmed Young's reputation and business by labeling him an illegal profiteer who exploited "desperate Afghans."
Some embarrassing revelations have emerged during the discovery process, including internal communications between CNN employees expressing concerns about the initial segment but ultimately airing it. Additionally, private communications between CNN employees were found to contain profanities and disparaging language when discussing Young. Young also sent a message to CNN correspondent Alex Marquardt, warning him that he would pursue legal action if he continued with the story.
The CNN insider stated that the topic discussed in the segment from 2021 is not a common topic of discussion among the network's employees.
Another CNN insider stated that the lawsuit is a "big risk," but the network's lawyers were confident in the outcome. However, they also mentioned that there are other concerns, such as possible layoffs and ongoing ratings issues, that the network should be focusing on.
""I'm not sure if that plan will work. However, it seems that the organization is in a constant state of crisis and chaos, so there are more pressing issues to address," they said."
"CNN faces ratings, cuts, and confusion on strategy, which is not exclusive to them but is particularly acute at their network."
Reports indicate that CNN CEO Mark Thompson, who assumed the role in 2023 following the removal of CEO Chris Licht, confirmed to staff during a town hall meeting that layoffs were imminent.
According to Puck News, "hundreds" of CNN employees may face layoffs in the near future as Thompson plans to prioritize digital. Thompson, who revived The New York Times' business model, has already implemented a subscription plan for CNN's news site.
In December, CNN recorded its lowest ratings in network history, with 91,000 viewers in the 25-54 age group and 481,000 total viewers. This decline occurred after President-elect Donald Trump's victory, and was also experienced by progressive outlet MSNBC.
A CNN insider praised Thompson's leadership but expressed concern about industry-wide headwinds that have resulted in layoffs at major media enterprises, including the Washington Post, HuffPost TIME, and the Los Angeles Times.
According to them, there is still a sense of uncertainty in the business world, and people are unsure about the future of CNN, as they don't have a clear understanding of what will happen.
Planet Chronicle Digital reached out to a CNN spokesperson for comment.
Planet Chronicle' Joseph A. Wulfsohn and Brian Flood contributed to this report.
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