The changing face of TV news: Salary cuts and unexpected exits

A pivotal moment in TV journalism

The world of high-priced TV anchor talent shifted dramatically on Nov. 29, 2017. On that day, Matt Lauer was fired from NBC’s “Today” amid shocking allegations of sexual misconduct. Hoda Kotb was quickly brought in to co-anchor alongside Savannah Guthrie for the show’s main 7-9 a.m. slot. NBC braced for the worst, but instead, the ratings of “Today” actually improved post-Lauer.

This shift highlighted the strengths of Kotb and Guthrie as a team, serving as a wake-up call for the industry. The long-held myth that losing a marquee talent would doom a show was shattered. As one media expert put it, “It’s driven by the fear that if a major anchor leaves, everything will fall apart. But when it didn’t, it marked a significant change in executive thinking.”

The current landscape: Financial austerity and strategic cuts

Recently, Hoda Kotb arrived at her own crossroads. Known for her tenure as the host of the 10 a.m. hour before replacing Lauer, Kotb faced a significant salary cut as new contract negotiations loomed. Although it was her decision to leave “Today,” the impending pay cut likely expedited her timeline. “I realized it was time to turn the page at 60 and try something new,” Kotb announced, revealing her departure from the show.

Kotb’s exit is reflective of a broader trend of financial austerity in TV—especially for long-running franchises like “Today.” For instance, NBC has cut the band on “Late Night With Seth Meyers” and reduced “The Tonight Show Starring Jimmy Fallon” from five nights to four. Similar cost-cutting measures are observable across the industry, even impacting sports broadcasting with ESPN laying off renowned hosts.

CBS’s strategic shifts

CBS, too, has felt the budget squeeze. Norah O’Donnell is set to leave her role as anchor of “CBS Evening News” next month, right after the presidential election. This decision is also financially motivated. O’Donnell will transition to a schedule filled with “60 Minutes” and specials, to be replaced by a rotating duo, John Dickerson and Maurice DuBois. Moreover, “The Late Late Show” was canceled following James Corden’s departure, replaced with a lower-cost “After Midnight” comedy quiz show.

The sports world isn’t immune

Even the sports broadcasting domain is seeing similar trends. ESPN has laid off prominent hosts, including Robert Griffin III and Sam Ponder. “Everyone’s looking at how to sustain the business,” says one insider. “No one’s aiming for profitability; it’s about sustainability.”

Audiences are changing

The leaders of TV news organizations must also grapple with the reality that linear broadcast audiences are diminishing over time, skewing older while younger viewers opt for news via social media and other alternative platforms.

“They clearly need to cut costs,” one industry agent remarked. “The $20 million-plus salaries just don’t justify themselves anymore.”

The drivers of change

Why is all this happening now? Blame the content recession, precipitated by the convergence of cord-cutting, evolving business models, economic uncertainty, and recent industry disruptions, including Hollywood strikes. This media implosion has forced leaders to reevaluate the cost structure, and talent salaries have become a prime target.

Broadcast faces who aren’t household names are likely to be hit hardest. Midday anchors on cable news channels, often earning up to $750,000 annually, might not see such salaries again. Meanwhile, more famous names might also get lost in the shuffle.

Example cases in point

Take Jeff Glor, who anchored “CBS Evening News” from 2017 to 2019 but was recently deemed expendable. Similarly, ABC’s “Good Morning America” continues to command attention due to the high salaries of its core anchors: Robin Roberts, George Stephanopoulous, and Michael Strahan. Stephanopoulous’ contract renewal will likely be tense given the existing climate. CNN’s new leadership is also expected to enact stringent financial adjustments, impacting even star anchors who might face salary freezes or reductions.

Financial prudence over emotional attachment

Future decisions will focus less on emotional considerations—like retaining marquee names for competitive reasons—and more on whether these individuals drive significant viewership. Stars that can move the needle might face salary cuts but still enjoy compensation far above the average American’s standard.

The new economic reality

Consider MSNBC’s Rachel Maddow, who currently makes around $30 million annually for her weekly show. It’s nearly unfathomable that she’ll command such a figure in the future. Similarly, Anderson Cooper of CNN, while not a ratings giant, merited five News Emmy Awards recently. CBS’s Gayle King has also experienced pay reductions, a stark departure from what she could have commanded a decade ago.

“There are people so tied to their networks that they’ll always be well paid,” shared one agent. “But with cord-cutting and shifting audiences, revenues are declining. That’s just reality.”

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