Paramount Global announced a significant reduction in its U.S. workforce, cutting 3.5% of its domestic employees. This decision, communicated through a companywide memo on Tuesday, affects several hundred jobs across the nation. The announcement was made by the company’s trio of co-CEOs: CBS chief George Cheeks, Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, and Paramount Pictures head Brian Robbins. They cited the ongoing decline of linear television and a “dynamic macro-environment” as the primary reasons for the layoffs.
The timing of these layoffs coincides with Paramount’s pending merger with Skydance Media, which is still awaiting approval from the Federal Communications Commission (FCC) nearly a year after the agreement was initially announced. The media giant, which owns CBS, MTV, Paramount Pictures, and Paramount+, is in a holding pattern as it navigates this complex merger process.
Background and Previous Layoffs
This latest round of layoffs follows a series of restructuring efforts by Paramount Global aimed at reducing its domestic headcount by 15% last summer and fall. These efforts resulted in the elimination of approximately 2,000 jobs as part of a broader strategy to cut $500 million in annual costs. As of the end of 2024, Paramount Global employed 18,600 people worldwide.
In the memo obtained by Variety, the co-CEOs stated,
“We will be reducing our domestic workforce by 3.5%, with the majority of impacted staff being notified today. This process may also result in some impacts to our workforce outside the U.S. over time.”
This statement underscores the potential for further international job cuts, reflecting the global nature of the challenges facing the media industry.
Industry-Wide Trends
Paramount Global is not alone in its efforts to streamline operations amid a challenging media landscape. Other major media companies have also announced job cuts in recent months. Disney, for instance, recently laid off several hundred employees across its TV, film, and corporate finance groups. Similarly, Warner Bros. Discovery has let go of fewer than 100 employees in its cable TV business.
These moves highlight the broader industry trend of media companies grappling with the decline of traditional television and the shift towards digital streaming platforms. The transition has been accelerated by changing consumer habits and the increasing dominance of streaming services.
Leadership Changes and Future Outlook
In a separate development, Paramount disclosed that its Chief Financial Officer, Naveen Chopra, will be leaving the company after five years. He is set to join gaming company Roblox as CFO on June 30. This leadership change adds another layer of complexity to Paramount’s current restructuring efforts.
Despite these challenges, the co-CEOs expressed optimism about the company’s future in their memo, stating,
“We are deeply grateful to the many employees who have been a part of creating and propelling our record-breaking hit content — most recently Mission: Impossible – The Final Reckoning, MobLand, and the NCAA Tournament — and for the impressive growth in streaming that our hits continue to drive.”
They emphasized the need to adapt to the evolving media landscape to ensure Paramount’s continued success.
Implications and Next Steps
The layoffs at Paramount Global are indicative of the broader transformations taking place within the media industry. As companies navigate the shift from linear television to streaming, they face the challenge of maintaining profitability while investing in new technologies and content strategies.
Looking ahead, the outcome of Paramount’s merger with Skydance Media will be closely watched by industry analysts. The merger’s approval could provide the company with new opportunities for content creation and distribution, potentially offsetting some of the challenges posed by the current economic environment.
As Paramount continues to transition, the company remains committed to supporting its employees during this period of change. The co-CEOs concluded their memo with a message of gratitude,
“As always, thank you for your commitment, compassion, and support for one another as we continue to transition Paramount for the future.”
This sentiment underscores the importance of resilience and adaptability as the media landscape continues to evolve.
