CBS News staffers rattled by CEO's abrupt exit as Trump lawsuit looms over network

The abrupt resignation Monday of CBS News CEO Wendy McMahon during a tumultuous time for the network has rattled its journalists. 

"She was on our editorial call this morning and gave remarks like she normally does but didn’t say anything about this," one CBS News staffer told Fox News Digital. 

In a memo sent to employees, McMahon said she was stepping down, citing tensions within the company. 

"It has been one of the most meaningful chapters in my career. Leading this extraordinary organization has been the honor of a lifetime because I got to work alongside all of you," McMahon wrote. "At the same time, the past few months have been challenging. It’s become clear that the company and I do not agree on the path forward. It’s time for me to move on and for this organization to move forward with new leadership." 

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McMahon was likely alluding to the legal battle CBS News and its parent company Paramount Global have been fighting against President Donald Trump, who sued for $20 billion over what he alleges was election interference in the 2024 presidential race. Lawyers for Trump and Paramount have entered mediation, fueling speculation that a settlement is imminent. 

The CBS insider said McMahon's resignation further indicates a settlement will be made and that her exit did not come as a shock to the rank and file. 

"We all read the gossip articles. We knew this was coming," the staffer said. 

McMahon's resignation came just weeks after the ousting of "60 Minutes" executive producer Bill Owens, who cited his inability to maintain editorial independence as his reason for leaving the network. 

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Journalists at CBS News say McMahon "absolutely" had their backs when it came to their journalism. 

"I’m sad. She’s done a good job; fought the good fight," one veteran "60 Minutes" producer told Fox News Digital. "As her email to the staff says, ‘It’s become clear that the company, and I’d not agree on the path forward.' I can only imagine what that path is, but I don’t think it’ll be a good path."

The "60 Minutes" producer referred to McMahon as a "steadfast supporter" of the program throughout the drama that has unfolded. 

"She was the main person holding the line for ‘60’," a second "60 Minutes" producer said.

"This is so unfortunate. It seems that to actively pledge adherence to journalistic integrity and independence means you no longer have a home within CBS News leadership. I don’t think [it] bodes well," they told Fox News Digital. 

As McMahon announced her resignation Monday morning, "60 Minutes" correspondent Scott Pelley took not-so-subtle jabs at Trump while speaking at Wake Forest University's commencement address.

"Why attack universities? Why attack journalism? Because ignorance works for power," Pelley told the graduates Monday. "First, make the truth seekers live in fear, sue the journalists and their companies for nothing. Then, send masked agents to abduct a college student who wrote an editorial in her college paper defending Palestinian rights and send her to a prison in Louisiana charged with nothing! Then move to destroy the law firms that stand up for the rights of others."

Many believe Paramount Global is hoping to settle the suit ahead of a planned merger with Skydance Media in order to prevent potential retribution by Trump's FCC, which has the authority to halt the multibillion-dollar transaction. Shari Redstone, Paramount's controlling shareholder, is reportedly in favor of settling with the president.

Redstone not only reportedly wanted to "keep tabs" on upcoming "60 Minutes" segments involving Trump, she reportedly urged CBS execs to delay any sensitive reporting on Trump until after the merger deal closed with Skydance. That led to Owens' own exit from the network. 

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The CBS lawsuit stems from the editing of an October exchange Harris had with "60 Minutes" correspondent Bill Whitaker, who asked her why Israeli Prime Minister Benjamin Netanyahu wasn't "listening" to the Biden administration.

Harris was widely mocked for the "word salad" answer that aired in a preview clip of the interview on "Face the Nation." However, when the same question aired during the primetime special, Harris had a different, more concise response. Critics at the time accused CBS News of editing Harris' "word salad" answer to shield the then-vice president from further backlash leading up to Election Day. 

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Earlier this year, FCC Chair Brendan Carr ordered CBS News to hand over the unedited transcript of the interview as part of its investigation into whether the network violated the FCC's "news distortion" policy after a complaint was filed. CBS had refused to release the unedited transcript when the controversy first began. 

The released raw transcript and footage showed that both sets of Harris' comments came from the same response, but CBS News had aired only the first half of her response in the "Face the Nation" preview clip and aired the second half during the primetime special. 

CBS News did not immediately respond to Fox News Digital's requests for comment.

Fox News Digital's Brian Flood contributed to this report.