Employees over at CNN are worried sick that widespread job cuts are coming following the formation of parent company Warner Bros. Discovery, CNBC reports.

Sources told CNBC that they expect the company to lay off more than 1,000 people by the end of the year, and parts of CNN that are considered unnecessary may get cut from the budget.

CNN’s profit is set to drop below $1 billion this year for the first time since 2016, when Donald Trump was elected president. Parent company Warner Bros. Discovery
’s valuation has nearly been cut in half this year as investors have lowered their expectations on global streaming subscriber growth and macroeconomic pressures have pressured advertising revenue.

CEO Chris Licht has been given a mandate from Warner Bros. Discovery CEO David Zaslav to transform CNN, which the network boss is internally referring to as a “right-sizing” of the business. Many of Licht’s job cuts are still to come this year, according to people familiar with the matter, who asked not to be named because the decisions are private.

Hours after this story was published, Licht sent a memo to all staff confirming the end of his six-month business and signaling additional layoffs will be coming.

“There is widespread concern over the global economic outlook, and we must factor that risk into our long-term planning,” Licht wrote. “All this together will mean noticeable change to this organization. That, by definition, is unsettling. These changes will not be easy because they will affect people, budgets, and projects.”

Licht’s review is part of a larger effort spearheaded by Zaslav, who has told division heads throughout the company to rethink their units and find ways to cut costs. More than 1,000 people will be laid off by Warner Bros. Discovery before the end of the year, said the people, who asked not to be named because the discussions are private and ongoing. Warner Bros. Discovery has about 40,000 employees.