Paramount Global Layoffs in Full Swing: Massive Job Reductions Announced

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Paramount Global is entering Phase 2 of its layoff plan, targeting 2,000 jobs for a $500 million saving.

At a Glance

  • Paramount Global initiated a second round of layoffs as part of plans to cut 2,000 jobs.
  • 90% of layoffs will be completed by the end of Tuesday, according to Co-CEOs.
  • Layoffs are part of efforts to accelerate streaming profitability and adjust to changes in traditional media.
  • The company plans to cut 15% of its US workforce and save $500 million annually.

Paramount Global’s Layoff Plan and Strategic Shift

Paramount Global, in its extensive and strategic restructuring initiative, is set to execute Phase 2 of its layoff plan. Around 2,000 jobs, approximately 15% of its US workforce, face elimination. This decision aims to save the company $500 million annually. The company’s leadership emphasized the need to adapt to the evolving media landscape, shifting towards advanced technology and AI integration to enhance its streaming capabilities.

Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins stated that 90% of these layoffs would be finalized by the end of Tuesday. These aggressive job cuts are part of a larger strategy to bolster profitability in Paramount’s streaming services and respond to significant shifts in traditional media consumption. The company has acknowledged the difficulty of such decisions yet recognized the necessity to sustain competitive advantage.

Impact on Workforce and Operations

The planned layoffs follow an earlier announcement in August, where Paramount disclosed its intention to reduce 15% of its US workforce. These job cuts are closely tied to an imminent merger with Skydance Media, a deal expected to bring substantial technological enhancements. This operational shakeup will predominantly affect roles in media, communications, and corporate support areas.

“90% of these reductions will be complete” by the end of Tuesday.

The restructuring will also see significant changes at CBS News, particularly the Washington, DC bureau, expected post the 2024 presidential election. CBS Evening News will relocate to New York, with Norah O’Donnell being replaced by John Dickerson and Maurice DuBois. This shift signifies a broader alignment towards strengthening operations amidst evolving market demands.

Economic and Financial Justifications

Paramount Global, like many in the media sector, grapples with the repercussions of declining traditional TV viewership and shifting advertising revenues. These layoffs, along with the shutdown of Paramount Television Studios, underscore substantial cost-cutting measures. Paramount already wrote down the value of its cable networks by $6 billion, refocusing on digital transformation and streaming.

“Like the entire media industry, we are working to accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses. In order to set Paramount up for continued success, we are taking these actions, and after today, 90% of these reductions will be complete.”

The current job cuts will incur charges between $300 million to $400 million in the third quarter, impacting the Advertising Division and other areas within the streaming organization. Regular restructuring efforts reflect a deliberate response strategy integral to re-align Paramount’s operational and financial frameworks in light of its merger with Skydance Media.

Sources

1. Paramount Initiates Next Round Of Layoffs In Ongoing Effort To Cut 15% Of U.S. Workforce

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