Paramount Global made headlines once again as they announced a second round of staff cuts on Tuesday morning. This move is part of a larger effort by the media giant, which owns CBS, Comedy Central, and MTV, to reduce costs in a challenging period for traditional media companies.
In a memo sent out to employees, Paramount’s co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins explained that these actions were necessary to ensure the company’s continued success. They reassured staff that after today, 90% of the planned reductions will be completed.
Like many other media companies, Paramount is facing difficulties in generating profits as more viewers shift towards streaming platforms and digital content consumption. This shift complicates the task of attracting large audiences for advertisers and distributors.
Back in August, Paramount had already announced plans to cut 15% of its U.S. workforce, which was estimated to impact around 2,000 employees. These layoffs were made in anticipation of the company’s merger with Skydance Media.
As a result of these workforce reductions, Paramount is expected to incur a significant restructuring charge of $300 million to $400 million in the third quarter. The executives expressed their gratitude to departing employees for their contributions, acknowledging the difficulty of saying goodbye to valued colleagues.
The company hinted that there may be more developments to come in the future, as they navigate the evolving media landscape. Stay tuned for further updates on Paramount Global’s restructuring efforts.
