Paramount Layoffs: Firm To Fire About 2,000 Employees In US; Here's Why

Paramount Layoffs: The firm behind well-known networks is undertaking a significant cost-cutting initiative. The company aims to reduce its annual expenses by $500 million.

Paramount Layoffs: Paramount Global started laying off 15 per cent of its US workforce on Tuesday as part of its pre-planned layoff announced during the earnings call last week, according to an internal memo from the media giant detailing its planned job cuts, as per a news agency Reuters report.

Paramount, the company behind well-known networks such as CBS, MTV, and Comedy Central, is undertaking a significant cost-cutting initiative. The company aims to reduce its annual expenses by $500 million. This financial strategy is part of a broader effort to achieve profitable growth before the planned merger with David Ellison's Skydance Media.

In an internal memo, Paramount's co-CEOs said that the company has reached an "inflection point" where implementing changes is essential to fortify the business, according to the report.

“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. We understand that you may have questions about the next steps, and while we may not be able to provide all the answers at this time, we will continue to update you on our progress, the memo reads.

Although every division is likely to be affected, the executives noted that the immediate focus will be addressing “redundant functions” and “streamlining corporate teams.”

The layoffs disclosed during a post-earnings call last week are expected to impact approximately 2,000 employees. This reduction process will continue until the end of 2024, with the majority—about 90 per cent—expected to be finalised by the end of September.

This restructuring initiative occurred as the New York-based company grappled with a difficult linear TV market. Recently, the company adjusted the value of its cable networks downward by nearly $6 billion.

On a more positive note, the company's streaming division, encompassing platforms like Pluto TV and Paramount+, reported its first quarterly profit in three years on Thursday.