Paramount Global has announced its decision to initiate a strategic workforce reduction plan, resulting in the layoff of 15% of its U.S.-based employees, effective from Tuesday onwards. This information was communicated through an internal memorandum issued by the media conglomerate.

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.