Paramount Global has initiated a significant workforce reduction, cutting its U.S.-based staff by approximately 3.5%, which translates to several hundred employees. The firm originally revealed this move back in August. It’s an indication of their continued struggle to overcome the difficult media industry environment, characterized by a loss of traditional pay-TV subscribers and broader macroeconomic headwinds.
On Tuesday morning, the company’s leadership went to do something. They made sure that impacted staffers were all personally notified ahead of the layoffs by a memo from George Cheeks, Chris McCarthy and Brian Robbins, the three CEOs at Paramount Global. The majority of impacted staff received their notifications on this day, marking a significant moment in the organization’s restructuring process.
Paramount Global’s workforce stood at roughly 18,600 full- and part-time employees globally as of December. The recent cuts are emblematic of a larger trend in the media sector. In fact, companies like Disney and Warner Bros. Discovery are laying off thousands of employees to address the same issues.
The layoffs at Paramount Global align with a go-forward plan introduced by its CEOs in June, which emphasized job cuts and reduced spending to better position the company for future success.
“We recognize how difficult this is and are very thankful for everyone’s hard work and contributions. These changes are necessary to address the environment we are operating in and best position Paramount for success.” – George Cheeks, Chris McCarthy, and Brian Robbins
Unlike previous cuts, the current ones focus on the U.S. workforce. The nature of the company’s moves will affect national operations, and the company is still evaluating its needs globally. Paramount Global seeks to consolidate its operations and cut costs amid changing market conditions.
The media industry is currently experiencing a seismic shift, with numerous companies grappling with the decline of traditional viewing models and adapting to new consumer preferences. Paramount Global is in the middle of, and actively accelerating, layoffs. This decision mirrors the growing pattern of many major media companies being forced to readjust their business models due to outside forces.