1 month ago
E.W. Scripps CEO Touts AI 'Revolution' Amid 12% Workforce Layoffs
A company called E.W. Scripps makes local TV news shows that people watch in their cities and towns.
The person in charge, Adam Symson, told important money experts that the company needs to change.
Many people who worked there are losing their jobs, about 12 out of every 100 workers.
The company says it will use smart computer programs, called artificial intelligence (AI), to help make the news.
It wants to create news that is on all day and night using these new tools.
Right now the company is losing money, so the boss says these changes are needed.
The leaders promise they still care about making true and accurate news.
When people heard about the plan, the company's shares went up a lot.
The company also likes new rules that could help TV stations compete with big internet companies.
It will take time to see if these changes work.
Scripps CEO Adam Symson briefed Wall Street on a 'transformation plan' that has cut 12% of the workforce and leans heavily on AI.
The company has eliminated 432 positions and 126 open jobs since the start of the year, including 268 cuts disclosed this week, mostly at local TV stations.
Second-quarter revenue fell 9% to $490.4 million with a net loss of 34 cents per share, missing Wall Street expectations, yet shares rose more than 20%.
Scripps targets $100 million in run-rate savings and an EBITDA increase of $125 million to $150 million by 2028.
Symson said his focus is on the workforce overhaul rather than selling the company, and he praised the FCC's vote to eliminate the local TV ownership cap.
- Who
- Adam Symson, CEO of E.W. Scripps, and the company's executives
- What
- Announced a transformation plan that cuts about 12% of the workforce while adopting AI-powered, 24-hour streaming local news
- Where
- At E.W. Scripps' local TV stations across the United States
- When
- Friday, during the company's second-quarter earnings call; 268 layoffs were disclosed earlier that week
- Why
- To cut costs and adapt as cord-cutting and advertisers move away from linear TV, targeting $100 million in run-rate savings
Supporters
Critics
FCC local TV ownership cap
Supporters
Broadcasters and FCC Chairman Brendan Carr say eliminating the 39% household cap creates a more level playing field against Big Tech, and that the 1990s rules predate the digital revolution.
Critics
The decision is likely to be challenged in court, and antitrust concerns over station consolidation are already central to the legal fight freezing Nexstar's $6.2 billion acquisition of Tegna.
AI and automation in newsrooms
Supporters
Scripps says leaning into AI, automation and centralized roles will improve its operating model and better serve audiences, insisting it is 'not wavering' on quality journalism.
Critics
The changes have meant cutting about 12% of the workforce in what Symson called 'a painful process full of difficult decisions,' mostly at local TV stations.
Key facts
- Company
- E.W. Scripps, owner of the ION broadcast network, newspapers and multicast networks
- CEO
- Adam Symson
- Workforce reduction
- About 12% — 432 positions and 126 open jobs eliminated since the start of the year
- Layoffs disclosed this week
- 268 jobs, mostly at local TV stations
- Q2 revenue
- $490.4 million, down 9% year over year
- Q2 result
- Net loss of 34 cents per share, below Wall Street expectations
- Savings targets
- $100 million in run-rate savings; $125–150 million EBITDA increase by 2028
- Rejected hostile takeover bid
- Sinclair Inc. (last year)
Quotes
Adam Symson
CEO of E.W. Scripps
“"a painful process full of difficult decisions," adding execs are making the moves "knowing they are financially necessary for fulfilling our mission."”
deadline.com
“"We’re leaning into AI, automation, technology and the centralization of some roles," he said.”
deadline.com
