Paramount Layoffs: The Media Firm Announces Second Round Of Job Cuts

Paramount Layoffs: In August, Paramount announced plans to reduce its US workforce by 15 per cent, a move expected to impact approximately 2,000 employees.

Paramount Layoffs: Due to the layoffs, the company anticipates a restructuring charge of between $300 million and $400 million for the third quarter

Source : Pexels

Paramount Layoffs: Paramount Global announced a second round of layoffs on Tuesday as part of a broader effort to cut costs amid challenging conditions for traditional media companies. This decision will affect various divisions under its ownership, which include well-known networks such as CBS, Comedy Central, and MTV.

In a memo addressed to employees, Paramount's co-CEOs—George Cheeks, Chris McCarthy, and Brian Robbins—explained that these actions are necessary to position the company for ongoing success. “In order to set Paramount up for continued success, we are taking these actions, and after today, 90 per cent of these reductions will be complete,” the memo said, according to a report in The Variety.

Like many of its industry peers, Paramount is facing difficulties in achieving profitability. An increasing number of viewers are shifting their attention from traditional television programs and movies to streaming services and digital platforms. This shift complicates attracting large, simultaneous audiences, which are essential for meeting the demands of advertisers and distributors alike.

In August, Paramount announced plans to reduce its US workforce by 15 per cent, a move expected to impact approximately 2,000 employees. These layoffs are part of the company's strategy leading up to its anticipated merger with Skydance Media.

Due to the layoffs, the company anticipates a restructuring charge of between $300 million and $400 million for the third quarter.

“Days like today are never easy. It is difficult to say goodbye to valued colleagues, and to those departing, we are incredibly grateful for your countless contributions,”  the executives acknowledged as per the report.

While the company did not provide specific details about which areas of its operations would see staffing reductions, the International Brotherhood of Electrical Workers (IBEW), which represents CBS employees, stated on Monday that those affected included editors, media ingest and distribution staff, and show production employees.

“We’re disappointed that CBS was unable to find a way to retain these highly skilled professionals in their operation. IBEW members have been producing CBS broadcasts since before the invention of television, and these layoffs are a hard pill to swallow,” said IBEW Director of Broadcasting and Telecommunications Robert Prunn in a statement.