Paramount Global has carried out another wave of job cuts as part of a previously announced effort to reduce its US workforce by 15 percent, or approximately 2,000 positions.
This is the second phase of the cost-cutting initiative, which is aimed at adjusting to the changing landscape in both streaming and traditional media sectors.
Majority of Layoffs Now Complete
Co-chief executive officers George Cheeks, Chris McCarthy, and Brian Robbins informed staff through a memo on Tuesday that 90 percent of the planned cuts are now complete following this latest round of layoffs.
The memo said:
“Like the entire media industry, we are working to accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses.”
Part of a Larger Cost-Cutting Strategy
These layoffs are part of a $500 million cost-cutting plan announced in June.
In Paramount’s second-quarter earnings report in August, McCarthy revealed that the company would be significantly reducing its US workforce. The cuts would mainly be in departments such as marketing, communications, finance, legal, and technology.
The initial round of job cuts took place in August. They included shutting down Paramount Television Studios, a division responsible for producing popular shows like Tom Clancy’s Jack Ryan, Reacher, and The Spiderwick Chronicles.
This marked the beginning of Paramount’s efforts to streamline its operations and adapt to the evolving media environment.
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Upcoming Merger with Skydance Media
These cost-cutting measures come as Paramount is in the process of merging with Skydance Media. The deal is expected to be finalized in the first half of next year.
During this merger process, Skydance identified $2 billion worth of cost efficiencies, suggesting that further consolidation may be in store as the two companies integrate their operations.
The layoffs and restructuring reflect the challenges faced by media companies in an industry that is increasingly focused on streaming services, as they navigate profitability and adapt to shifting consumer habits.
