Major media company begins laying off 15% of work force, hundreds to be cut in shakeup

In more bad news for Hollywood, layoffs have begun at Paramount Global as the media company looks to reduce its workforce by 15 percent in the coming weeks.

A memo to employees this week explained the three-stage process for achieving the reduction in the U.S. workforce as the company is facing an acquisition by Skydance Media.

Hundreds of employees are expected to be cut and co-CEOs Chris McCarthy, Brian Robbins, and George Cheeks got staff ready for the changes.

“In June, we laid out our Strategic Plan to return Paramount to profitable growth, which includes streamlining the organization and cutting costs by $500 million on an annualized basis,” they wrote, according to Deadline.

(Video Credit: Fox 11)

“This process will take place in three phases, starting today and continuing through the end of the year. We expect 90% of these actions to be complete by the end of September,” they added. “We know that having to part ways with teammates whose contributions have been instrumental to our success is incredibly hard. In partnership with our HR leaders, we are committed to providing support to employees transitioning on from Paramount and to our teams who will need to adapt to these changes.”

“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in our direction forward,” the memo stated.

According to Deadline:

Paramount reported having 21,900 full- and part-time employees in 33 countries globally at the end of 2023, as well as 4,500 project-based staffers. Last February, the company let go of 3% of employees. The current rounds are expected to see at least 2,000 more employees depart.

The cuts are part of a corporate effort to generate annual run-rate cost savings of $500 million. Paramount implemented the February layoffs as it began to confront a number of financial challenges, mainly the impact of its declining cable TV business.

The cost-cutting also affected Paramount Television Studios which will be completely shut down by the end of the week, sending all remaining projects over to CBS Studios.

“As you’re all aware, Paramount Global has made the difficult decision to close Paramount Television Studios as part of the company’s broader restructuring plans. This has been a challenging and transformative time for the entire industry, and sadly, our studio is not immune,” Nicole Clemens, PTVS president, said in a memo to staffers.

“Over the past 11 years, PTVS has weathered seemingly insurmountable obstacles through a combination of strength, determination, and unwavering commitment,” Clemens added. “We met these challenges with incredible resilience, creativity, and passion for what we do, and I could not be prouder of our team.”

In his own memo, Cheeks told the team the shutdown of the studio was “not a decision based on how PTVS performed. This move is the result of significant changes in the TV and streaming marketplace and the need to streamline our company.”

The New York-based company owns networks such as CBS, MTV, Nickelodeon, and Comedy Central. Of note, the company’s streaming division, which includes Pluto TV and Paramount+, saw its first quarterly profit in three years on Thursday.

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Frieda Powers

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Originally from New York, Powers graduated from New York University and eventually made her way to sunny South Florida. Powers also contributes to BizPac Review.

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