Paramount Global to Lay Off 15 Percent of U.S. Workforce and Close TV Studio

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Paramount Global to Lay Off 15 Percent of U.S. Workforce and Close TV Studio

Paramount Global has announced it will lay off 15 percent of its U.S workforce and shut down its Paramount Television Studios.

This decision aims to reduce annual costs by $500 million and return to profitable growth. This is ahead of its merger with Skydance Media.

Workforce Reduction and Cost-Saving Measures

In a memo, Paramount’s co-CEOs emphasized the company is at an “inflection point.” It said these changes are necessary to strengthen the business. The layoffs, announced during a post-earnings call last week, are expected to affect roughly 2,000 employees. The cuts will continue through the end of 2024. 90 percent are anticipated to be completed by the end of September.

Closure of Paramount Television Studios

As part of the broader restructuring plans, Paramount Television Studios (PTVS) will be shut down. President Nicole Clemens emailed employees to inform them of this decision, noting the significant impact on the studio.

George Cheeks, Paramount Global’s co-CEO, explained the closure is a response to major shifts in the television and streaming industry and a need to streamline the company. He added all current PTVS series and development projects would be transferred to CBS Studios.

Some members of the CBS teams will be leaving the company as part of the restructuring.

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Navigating Market Challenges

The restructuring comes as Paramount Global, based in New York, navigates a challenging linear TV market. Recently, the company wrote down the value of its cable networks by nearly $6 billion. This reflects the difficulties faced in the traditional TV sector.

Streaming Division Milestones

Paramount’s streaming division, which includes Pluto TV and Paramount+, reported its first quarterly profit in three years on Thursday.

This milestone highlights the growing importance of streaming services in the company’s overall strategy and the potential for future growth in this sector.

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