E.W. Scripps has cut 12% of its workforce and is shifting to AI-powered news production as part of a "transformation plan" CEO Adam Symson detailed to Wall Street analysts Friday. The company expects the changes to save $100 million annually and reshape how its local TV stations operate.
The cuts total 432 positions and 126 open jobs eliminated since the start of the year, mostly at local stations. Scripps, a nearly 150-year-old company that owns the ION broadcast network, newspapers and multicast networks, said more reductions are coming in future quarters.
An AI-powered newsroom
Symson described the restructuring as part of a "revolution" in local news production. "We're leaning into AI, automation, technology and the centralization of some roles," he said during the company's second-quarter earnings call. The changes will make the local station group "a technology-forward, AI-powered broadcast journalism company dedicated to serving our communities with the same high-quality, fact-based reporting that they've relied on us for over the past 150 years."
The company is adopting a 24-hour streaming news model enabled by artificial intelligence, with production roles centralized across its station group. That operational shift is a concrete example of AI for Operations in a traditional media environment.
Symson said the new setup will "improve our operating model and better serve our audiences," adding, "We are not wavering on our commitment to quality journalism." He called the job cuts "a painful process full of difficult decisions," made "knowing they are financially necessary for fulfilling our mission."
Financial pressure and industry headwinds
Scripps released second-quarter results below Wall Street expectations before the call. Revenue came in at $490.4 million, down 9% from a year earlier, with a net loss of 34 cents per share. The company attributed the results to "challenges on a number of fronts."
Broadcasters of all sizes are battling cord-cutting and the shift of audiences and advertisers away from linear TV. Nexstar Media Group, the largest U.S. station owner, is in a legal fight over its $6.2 billion acquisition of Tegna after DirecTV and state attorneys general sued to block the deal. A federal judge froze the integration pending an appeal, which will be heard in the fall.
Scripps said the layoffs and increased technology use will boost EBITDA by $125 million to $150 million by 2028 through cost savings and revenue gains. Despite the earnings miss, shares rose more than 20% in midday trading.
Ownership rules and takeover questions
The FCC voted Thursday to eliminate the federal cap on local TV station ownership, a move Symson joined other station leaders in supporting. The cap, which limited stations reaching more than 39% of U.S. households, dated to the 1990s. Symson said the rules "once served an important purpose, but they were put in place well before the digital revolution, well before consumers have the kind of choices they do today." The decision is likely to face legal challenges.
Scripps rebuffed a hostile takeover bid from rival Sinclair Inc. last year. Asked whether the company could change hands, Symson said he couldn't speak for the family that controls Scripps shares. Speaking for himself, he said his focus is on building the company and continuing the workforce overhaul rather than entertaining offers to sell.
Why this matters for Executives & Strategy
Scripps' plan is a case study in how traditional media companies are using AI to cut costs while maintaining output. The company's math - $100 million in savings from cuts, plus $125 million to $150 million in EBITDA gains by 2028 - is exactly the kind of analysis that belongs in AI for Executives & Strategy planning. For executives in any industry, the key question is whether automation can replace human production work without degrading the product. Scripps is betting it can, and the next few quarters will show whether that bet pays off.
Your membership also unlocks:
