Paramount International has initiated the following section of its plan to put off 15% of its U.S. workforce, saying the cuts shall be 90% full after additional cutbacks right this moment.
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 latest days that the streaming group inside Paramount, encompassing a number of departments, is anticipated to be essentially the most instantly affected by Part 2. The corporate’s promoting division was focused by plenty of cuts final week. Over the course of the 12 months, plenty of high-profile execs have left the corporate and Paramount Tv has shut down, with its reveals transferring to CBS Studios.
“Like your entire Media trade, we’re working to speed up streaming profitability whereas on the similar time adjusting to the evolving panorama in our conventional companies. In an effort to set Paramount up for continued success, we’re taking these actions,” the memo mentioned. “Days like right this moment 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 staff in 33 international locations globally on the finish of 2023, in addition to 4,500 project-based staffers. Final February, the corporate let go of three% of staff. The present rounds are anticipated to see a minimum of 2,000 extra staff depart.
The employees reductions stem from a frightening set of economic challenges dealing with Paramount and different legacy media corporations, particularly as a result of 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 property. Because the money circulation 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 corporations saddled with important debt.
Because it has tightened the belt over the previous 12 months, Paramount has additionally pursued a sale of sure property in addition to the corporate as a complete. Skydance Media final month clinched a merger deal that may 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 this moment, we are going to start section two of our workforce reductions within the US.
Like your entire Media trade, we’re working to speed up streaming profitability whereas on the similar time adjusting to the evolving panorama in our conventional companies. In an effort to set Paramount up for continued success, we’re taking these actions, and after right this moment, 90% of those reductions shall be full.
Days like right this moment 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 respect everybody’s resilience and dedication to delivering a number of the largest hits throughout TV and Movie, and for persevering with the onerous however obligatory work to greatest place the corporate for the long run.
Thanks,
George, Chris & Brian
