The prominent American multinational conglomerate in the mass media and entertainment industry, under the control of National Amusements, operates well-known networks such as CBS, MTV, and Comedy Central, is targeting a reduction in annual expenses by $500 million in order to achieve profitable growth prior to its merger with David Ellison's Skydance Media.
In the internal communication, the co-CEOs of Paramount
indicated that the organization is at a critical juncture, necessitating
changes to fortify the business.
The layoffs, which were revealed during a post-earnings
conference call last week, are projected to impact approximately 2,000
employees. This process will extend through the end of 2024, with an
expectation that 90% of the reductions will be finalized by the end of
September.
This restructuring initiative is taking place as the New
York-based firm faces difficulties in the linear television market, having
recently recorded a nearly $6 billion write-down in the value of its cable
networks.
On a positive note, the company's streaming segment, which
encompasses Pluto TV and Paramount+, reported its first quarterly profit in
three years on Thursday.