Paramount International has initiated the subsequent section of its plan to put off 15% of its U.S. workforce, saying the cuts might be 90% full after additional cutbacks right now.
George Cheeks, Chris McCarthy and Brian Robbins conveyed the information to staffers in a memo this morning. (Learn it in full beneath.) The Co-CEOs months in the past mentioned they have been aiming to realize $500 million in annual price financial savings, with layoffs a key element in hitting that focus on.
Sources have indicated to Deadline in current days that the streaming group inside Paramount, encompassing a number of departments, is predicted to be essentially the most immediately affected by Part 2. The corporate’s promoting division was focused by a variety of cuts final week. Over the course of the yr, a variety of high-profile execs have left the corporate and Paramount Tv has shut down, with its reveals transferring to CBS Studios.
“Like all the Media business, we’re working to speed up streaming profitability whereas on the identical time adjusting to the evolving panorama in our conventional companies. So as to set Paramount up for continued success, we’re taking these actions,” the memo mentioned. “Days like right now are by no means straightforward. It’s troublesome to say goodbye to valued colleagues, and to these departing, we’re extremely grateful in your numerous contributions.”
Paramount had 21,900 full- and part-time workers in 33 nations globally on the finish of 2023, in addition to 4,500 project-based staffers. Final February, the corporate let go of three% of workers. The present rounds are anticipated to see a minimum of 2,000 extra workers depart.
The employees reductions stem from a frightening set of economic challenges going through Paramount and different legacy media firms, particularly because of the decline in linear TV viewership and promoting. Final month, as Paramount reported its second-quarter monetary outcomes, it additionally revealed a $6 billion write-down of the worth of its cable community belongings. Because the money movement from conventional pay-TV sources diminishes, the fee profile of the streaming enterprise and the ever-increasing charges for top-tier sports activities rights are solely including to the concerns of firms saddled with important debt.
Because it has tightened the belt over the previous yr, Paramount has additionally pursued a sale of sure belongings in addition to the corporate as a complete. Skydance Media final month clinched a merger deal that can see it make investments $8 billion within the takeover of controlling shareholder Nationwide Amusements earlier than merging absolutely with Paramount.
Right here is the total memo from the Co-CEOs:
Hello Everybody,
We’re following up on the word beneath to tell you that right now, we are going to start section two of our workforce reductions within the US.
Like all the Media business, we’re working to speed up streaming profitability whereas on the identical time adjusting to the evolving panorama in our conventional companies. So as to set Paramount up for continued success, we’re taking these actions, and after right now, 90% of those reductions might be full.
Days like right now are by no means straightforward. It’s troublesome to say goodbye to valued colleagues, and to these departing, we’re extremely grateful in your numerous contributions.
We admire everybody’s resilience and dedication to delivering a number of the largest hits throughout TV and Movie, and for persevering with the arduous however obligatory work to finest place the corporate for the longer term.
Thanks,
George, Chris & Brian
