Paramount Global is implementing its workforce reduction plan, with a spokesperson confirming that the company has started laying off U.S. staff. The cuts will occur in three phases, beginning on Aug. 13 and concluding by the end of the year. It is estimated that 15 percent of Paramount’s U.S.-based employees will be affected.
In a memo dated Aug. 13, George Cheeks, Chris McCarthy, and Brian Robbins of Paramount’s Office of the CEO stated that they anticipate 90 percent of the layoffs to be completed by the end of September. The co-CEOs emphasized the necessity of making changes to strengthen the business due to industry challenges.
The company aims to save $500 million in annual costs as part of its strategic plan announced in June. Paramount reported an 11 percent revenue decrease for the quarter ending on June 30, with a notable decline in TV networks revenue. However, the streaming business saw a profit increase.
Despite posting an operating loss of $5.32 billion, Paramount remains focused on executing its Strategic Plan, which includes transforming streaming services, organizational streamlining, and optimizing financial performance.
The co-CEOs emphasized the importance of adapting to changes and supporting employees through the transition. The company did not disclose the exact number of employees impacted by the layoffs.
As Paramount prepares for a potential merger with Skydance Media, the company is navigating a critical juncture in its evolution. Shares of Paramount were relatively stable in midday trading on Aug. 13.
