Paramount Firing 15% of California Staff Per New Memo

Paramount CEO Brian RobbinsPhoto byWikimedia Commons

Paramount Global has commenced a series of layoffs as part of its strategy to reduce its workforce by 15%.

The layoffs, planned in three stages, will result in the departure of up to 3,000 employees, with 90% of the cuts expected to be completed by the end of September.

The Office of the CEO's George Cheeks, Chris McCarthy, and Brian Robbins disclosed the information to staff members in a memo, noting that Paramount is at a turning point where adjustments are required to fortify the company in light of changing market conditions.

"The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business," the two co-chief executives wrote. They underlined their commitment to helping people impacted by the changes and noted how tough it may be to part ways with important team members.

Paramount reported having 21,900 full- and part-time employees worldwide at the end of 2023, along with 4,500 project-based staffers. In February, the company laid off 3% of its workforce as it faced financial challenges, particularly from its declining cable TV business. Last week, Paramount reported a $6 billion write-down on its cable networks, highlighting the diminishing value of that asset class, similar to industry peer Warner Bros. Discovery.

To address these challenges, Paramount aims to generate annual cost savings of $500 million. The current layoffs are part of this effort, targeting marketing and communications as well as support functions, including legal, finance, and other administrative areas.

In a significant development, Paramount has put itself up for sale, with Skydance Media poised to take control in a merger expected to be completed by early 2025. David Ellison’s Skydance Media plans to invest $8 billion in a two-step takeover, first acquiring controlling shareholder National Amusements Inc. and then executing a merger with Paramount. RedBird Capital and Oracle billionaire Larry Ellison are among the financial backers of the deal.

The layoffs start after the quarterly results announcement and end on August 21, which is the last day of the Skydance proposal's "go-shop" period. This is a critical moment for Paramount. Other possible bidders have had time to submit their offers during this time. Regulatory consideration of the Skydance deal will begin if no other credible offer surfaced.

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