Paramount Sued By Former Employees Alleging Mass Layoffs Without Prior Notice

The suit alleged that the company didn’t give any proper notice of termination to more than 300 employees and violated the state’s Worker Adjustment and Retraining Notification Act

Paramount initiated ‘phase two’ of layoffs last week as part of its efforts to slash 15 per cent of its workforce based in the US to save close to $500 million in cost savings.

Source : Paramount

Paramount has been sued by former employees in a proposed class action filed in New York federal court earlier this week. The suit alleged that the company didn’t give any proper notice of termination to more than 300 employees and violated the state’s Worker Adjustment and Retraining Notification Act. 

The Act requires companies to give at least 90 days of notice in case of mass layoffs, reported The Hollywood Reporter. Denying the allegations, the firm said, “Paramount employees entitled to Federal or State WARN notice receive it.”

Earlier last week, Paramount initiated ‘phase two’ of layoffs as part of its efforts to slash 15 per cent of its workforce based in the US to save close to $500 million in cost savings. Sharing the announcement, co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins issued a memo and noted, “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”.

The firm informed that 90 per cent of the layoffs planned have already been completed. Notably, the first round of the layoffs took place a month earlier. These job cuts included the closing down of Paramount TV Studios along with the exit of several high-profile executives.

The latest lawsuit has been filed on behalf of Julian Hagins and noted that nearly 295 workers who worked with the firm in its New York headquarters and at least 50 employees who were based out of surrounding worksites were let go off, effective September 30, 2024.

The complaint stated that the workers are looking out for wages, salary, bonuses, commissions,accrued holiday pay, and benefits over a 60-day period that would have been paid out if Paramount maintained compliance with the law.