Paramount Global Lays Off 800 Employees to Cut Costs

Confidence UbaniFebruary 14, 20241 Mins read569

Paramount Global has announced that it laid off approximately 800 employees, constituting around 3% of its staff. This significant workforce reduction is partly triggered by the recent financial challenges encountered by the famous media company.

In an internal memo circulated on Tuesday, CEO Bob Bakish conveyed that these workforce adjustments were anticipated and necessary for Paramount Global to operate more efficiently and align with its strategic goals for the upcoming year.

The layoffs will affect diverse roles across Paramount’s extensive portfolio, encompassing Paramount Pictures, CBS, and cable TV networks such as Comedy Central, MTV, Nickelodeon, BET, Paramount+, and Pluto TV.

Bakish, expressing confidence in the decision, emphasized that these changes aimed to return the company to earnings growth.

He stated, “While I realize these changes are in no way easy, I am confident this is the right decision for our future. These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead, and I firmly believe we have much to be excited about.”

The media company’s share values experienced a decline of approximately 4% in Tuesday morning trading. Paramount Global’s strategic move comes amid considerations of mergers and acquisitions, with early talks reportedly involving Skydance Media and Warner Bros. Discovery.

This workforce reduction portrays Paramount Global’s challenge in navigating the shift from traditional linear television to streaming.

Despite the Super Bowl LVIII’s historic viewership of 123.4 million, Paramount faces financial struggles in its streaming division. The company recorded over $1 billion in losses in 2022, competing with established platforms like Netflix.

Additionally, its linear TV revenue fell by 8% last quarter, with a 14% decline in advertising sales as marketers increasingly allocate budgets to digital platforms.

The company’s CEO expressed optimism and said the layoffs were a pivotal step for Paramount to adapt to the streaming era successfully.