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After monetary woes and months of struggling to safe an acquisition earlier than agreeing to a merger with Skydance Media, Paramount has introduced that it’s going to reduce roughly 15% of its whole U.S. workforce as part of wider cost-cutting initiatives.
Paramount said that approximately 2,000 employees shall be let go, with job cuts starting within the coming weeks and set to wrap up by the top of the 12 months.
Associated: Paramount Leadership Alludes to Layoffs
Paramount International co-CEO Chris McCarthy stated that the layoffs would affect two sectors: “redundant features” for these in advertising and marketing and communications and those that work in finance, authorized, tech, and different help areas in an try to proceed “streamlining” the company construction.
“As you’ll be able to think about, these are troublesome selections to make,” McCarthy stated on a Q2 2024 earnings call with buyers. “We now have extremely gifted folks at Paramount, and these actions will not be reflections of their contributions. Fairly, they’re obligatory to remodel our group for the long run.”
The information comes simply one day after rival Warner Bros. Discovery posted a $10 billion web loss and a $9.1 billion write-down on tv belongings, pointing to a wider business development of a declining cable viewers amid the rise of streaming providers. Paramount wrote down the worth of its cable networks by almost $6 billion in Q2.
At Paramount, whispers of layoffs began in June on the annual shareholder assembly when executives revealed a plan to chop prices by roughly $500 million and famous that this would come with “eradicating “duplicative groups and features throughout the group, actual property, advertising and marketing, and different company overhead classes.”
Associated: Paramount Is Laying Off Hundreds of Employees Just Days After ‘Blockbuster’ Super Bowl LVIII Success
“To be clear, $500 million in price financial savings is only the start,” Co-CEO Bob Cheeks stated on the decision, per CNBC.
Paramount laid off an estimated 800 workers earlier this 12 months after the corporate broadcasted Tremendous Bowl LVIII to “return the corporate to earnings development” amid debt-related prices.
Early final month, Paramount and Skydance Media agreed to a merger valued at an estimated $8 billion after approval from majority shareholder Shari Redstone.
Paramount International was down about 33% year-over-year on Friday morning.
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