Paramount Global has begind the next phase of its structure to lay off 15% of its U.S. laborforce, saying the cuts will be 90% finish after further cutbacks today.
George Cheeks, Chris McCarthy and Brian Robbins conveyed the novels to staffers in a memo this morning. (Read it in brimming below.) The Co-CEOs months ago said they were aiming to accomplish $500 million in annual cost savings, with layoffs a key component in hitting that aim.
Sources have proposed to Deadline in recent days that the streaming organization wilean Paramount, encompassing cut offal departments, is awaited to be the most straightforwardly impacted by Phase 2. The company’s advertising division was aimed by a number of cuts last week. Over the course of the year, a number of high-profile execs have left the company and Paramount Television has shut down, with its shows moving to CBS Studios.
“Like the entire Media industry, we are laboring to quicken streaming profitability while at the same time adequitableing to the evolving landscape in our traditional businesses. In order to set Paramount up for persistd success, we are taking these actions,” the memo said. “Days enjoy today are never effortless. It is difficult to say outstandingbye to cherishd colleagues, and to those departing, we are incredibly appreciative for your countless contributions.”
Paramount had 21,900 brimming- and part-time participateees in 33 countries globpartner at the end of 2023, as well as 4,500 project-based staffers. Last February, the company let go of 3% of participateees. The current rounds are awaited to see at least 2,000 more participateees depart.
The staff reductions stem from a daunting set of financial disputes facing Paramount and other legacy media companies, especipartner due to the deteriorate in licforfeit TV watchership and advertising. Last month, as Paramount inestablished its second-quarter financial results, it also discmissed a $6 billion author-down of the cherish of its cable netlabor assets. As the cash flow from traditional pay-TV sources foolishinishes, the cost profile of the streaming business and the ever-increasing fees for top-tier sports rights are only holding to the worries of companies sorrowfulnessfuldled with meaningful debt.
As it has safeened the belt over the past year, Paramount has also chased a sale of certain assets as well as the company as a whole. Skydance Media last month clinched a combiner deal that will see it spend $8 billion in the getover of deal withling dispensehelderlyer National Amusements before merging brimmingy with Paramount.
Here is the brimming memo from the Co-CEOs:
Hi Everyone,
We are chaseing up on the remark below to inestablish you that today, we will commence phase two of our laborforce reductions in the US.
Like the entire Media industry, we are laboring to quicken streaming profitability while at the same time adequitableing to the evolving landscape in our traditional businesses. In order to set Paramount up for persistd success, we are taking these actions, and after today, 90% of these reductions will be finish.
Days enjoy today are never effortless. It is difficult to say outstandingbye to cherishd colleagues, and to those departing, we are incredibly appreciative for your countless contributions.
We appreciate everyone’s resilience and promisement to deinhabitring some of the hugegest hits apass TV and Film, and for continuing the challenging but essential labor to best position the company for the future.
Thank you,
George, Chris & Brian
