Paramount Global, the parent company of Paramount Pictures, CBS, Nickelodeon, and Channel 5, has announced 2,000 job cuts, affecting around 15 percent of its staff. This decision is part of a broader strategy to cut costs in preparation for its upcoming merger with independent film studio Skydance.
Financial Challenges And Write-Downs
The company has faced considerable financial pressures, including a $6 billion write-down of its cable networks, which include Nickelodeon, MTV, and Comedy Central. This impairment reflects the declining audience and advertising revenue from cable TV. This announcement follows Warner Bros. Discovery's recent $9 billion write-down on TV assets, highlighting a broader trend in the industry.
The need to reassess the value of its units, prompted by the pending merger with Skydance Media, led to the write-down and contributed to Paramount's $5.3 billion operating loss for the second quarter. Without this charge, the company would have reported an adjusted operating income of $867 million, or 54 cents per share, surpassing Wall Street's forecast of 12 cents per share.
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