E.W. Scripps has cut 12% of its workforce this year as the high-profile TV station group embraces artificial intelligence and automation in a sweeping overhaul of its news operations to become an “AI-powered broadcast journalism company.”
The company has eliminated 432 positions and 126 open roles since the beginning of the year, CEO Adam Symson told analysts during Scripps’ second quarter earnings call on Thursday. That includes 268 layoffs disclosed earlier this week, most of which affected employees at the company’s local television stations.
“We’re leaning into AI, automation, technology and the centralization of some roles,” Symson said, describing the changes as a “revolution” in how Scripps produces local news.
The restructuring is expected to generate $100 million in annualized savings as Scripps looks to remake its local TV business amid continued cord-cutting and shifts in viewing habits and advertising dollars.
Symson said the company is moving toward a 24-hour streaming news model and aims to turn its local station group into a “technology-forward, AI-powered broadcast journalism company.”
“We are not wavering on our commitment to quality journalism,” he added.
The CEO acknowledged the toll of the cuts, calling the process “painful” and “full of difficult decisions,” while arguing that the moves are financially necessary for the company.
Scripps’ overhaul comes as the economics of local television remain under pressure. The company reported $490.4 million in second-quarter revenue on Friday, a 9% decline from a year ago, and a net loss of 34 cents per share.
The broadcaster expects its broader transformation plan to increase Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) by $125 million to $150 million by 2028 through a combination of cost savings and revenue growth.
Wall Street responded positively to the cost-cutting push despite the weaker quarterly results. Scripps shares surged more than 20% in midday trading Friday.
In addition to its local television stations, Scripps owns the ION broadcast network.
