CNN’s days of unchecked spending and bloated staff may be numbered as Warner Bros. Discovery sets in motion a seismic corporate shakeup—one that many media insiders say spells doom for the flailing liberal network.

Last week, the entertainment giant announced plans to split into two companies by 2026, separating its legacy cable channels—CNN included—from its more lucrative streaming and studio operations. Insiders told Fox News that CNN is seen as “a declining asset” that’s dragging down Warner Bros. Discovery’s more profitable business lines.

The restructuring signals the end of an era, and for CNN, possibly the beginning of the end.

When Discovery merged with WarnerMedia just over three years ago, then-CEO David Zaslav heralded the move as a bold leap for "impactful storytelling." That optimism has faded. Under the new plan, Zaslav will hold on to the high-growth streaming and studio divisions while the cable properties, including CNN, will be handed to CFO Gunnar Wiedenfels—a cost-cutter by trade, not a showman.

“Putting a bean counter as CEO sends a very clear message: this is finally the beginning of the long-overdue correction of the [Jeff] Zucker-era excesses,” one media insider close to CNN told Fox.

Zucker, who was ousted prior to the 2022 merger, turned CNN into a hyper-partisan echo chamber that hemorrhaged credibility and ratings—despite lavishing its on-air personalities with sky-high salaries.

“It’s not just the overpriced talent,” the insider added. “It’s the overpriced producers. The overpriced executives. The superfluous reporters who barely are on the air. All will either be exited or forced to take massive pay cuts.”

And while the high-profile anchors may get headlines, the insider warned the carnage will hit hardest at the bottom.

“With no union protections, there will be massive layoffs and those remaining will be asked to do the work of their departed colleagues,” they said. “Everyone should feel some sympathy for what’s about to happen,” even if CNN’s political bent makes them a tough cause to champion.

The numbers don’t lie. In May, CNN clocked its second-worst month ever among adults aged 25-54, the key demographic for advertisers. Viewership has collapsed across all categories compared to 2024, putting the network on track for historic lows, according to Fox.

CEO Mark Thompson has tried to pivot toward digital content as traditional TV fades—but not everyone is buying the pivot.

“There’s nothing but tears on the horizon for CNN,” another longtime media insider with CNN experience said. “They no longer have much value since it’s now easier and cheaper to get video and live reports from news events, especially international events, which is their core competency.”

“And their content — especially on CNN.com — isn’t good enough to charge subscriptions,” they added. “Their revenue model is in collapse, but it’s a slow death. Gunnar has about ten years to squeeze every last penny out of that place before rigor mortis.”

CNN also carries the burden of being overstaffed compared to competitors like MSNBC. The insider suggested Wiedenfels begin by slashing CNN’s U.S. show teams by 70%, bringing them in line with competitors.

“CNN’s first- and second-tier talent now make, thanks to Jeff Zucker buying their loyalty, about five times what they’re worth on the open market,” they said. “All talent should be offered a choice of an immediate pay cut — based on a market analysis of their actual value — with a three-year contract renewal, or we pay out their remaining contract and terminate them.”

The plan? Downsize and delay the inevitable.

“Overall, you could reduce costs at CNN 50-60% with no change to ratings or revenue, and manage the decline from there, with increasing, annual cutbacks as you wind the company down,” the source concluded. “Basically, do palliative care.”

As President Donald J. Trump continues to dominate the media narrative in his second term, CNN finds itself trapped in the legacy of its own ideological overreach, financial mismanagement, and fading relevance.