Paramount Global, amidst ongoing merger and acquisition discussions, is implementing cost-cutting measures by reducing its workforce. Approximately 800 employees, accounting for around 3% of the company’s total headcount, will be let go worldwide.
CEO Bob Bakish shared this news in a memo addressed to the staff, which was obtained by Variety. While U.S. employees affected by the layoffs will be informed by the end of the day, international staff members will receive notifications gradually, as per local legal requirements in each country of operation.
The memo did not specify the exact number of employees being laid off, but sources confirm that approximately 800 individuals will be affected across all divisions of the company, including CBS, Paramount Pictures, Paramount+, Pluto TV, Showtime, Comedy Central, Nickelodeon, and MTV.
In the memo, Bakish expressed confidence that these adjustments are necessary for the company’s future success, stating, “These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead – and I firmly believe we have much to be excited about.”
As of the end of 2022, Paramount Global reported having 24,500 full-time employees. The company is scheduled to release its fourth-quarter 2023 earnings on February 28, after the market closes.
The decision to downsize comes as Paramount Global explores potential merger and acquisition opportunities. Skydance Media CEO David Ellison has engaged in talks with Shari Redstone, the owner of a controlling stake in Paramount Global, regarding a possible acquisition by National Amusements Inc. Additionally, Byron Allen’s Allen Media Group recently made an unsolicited $30 billion offer to acquire Paramount Global, though the financial partners involved are unclear.
Although Paramount Global experienced a 3% increase in revenue for the third quarter, thanks to growth in its streaming and film businesses, its largest division, linear TV, faced an 8% decline in revenue due to contracting advertising (which fell by 14% in the quarter).
For further details, you can read Bakish’s memo by visiting the F5 Magazine website.
Throughout this challenging transition, Bakish emphasized his gratitude for the hard work and dedication of the departing employees, acknowledging the significant contributions they have made to the company. He also encouraged all team members to support one another during this time and reassured them of his commitment to providing updates when possible.
It is clear that Paramount Global is determined to weather this transformation and emerge stronger than ever. With recent successful endeavors like Super Bowl LVIII and the return of Jon Stewart to The Daily Show, Paramount Global continues to showcase its power and influence in the entertainment industry. As “One Paramount,” the company remains devoted to its values, fostering an inclusive workplace, and executing its strategic vision for the future.
Brief summary of the original article “Paramount Global Layoffs: CEO Bakish Memo to Staff” published on Variety.com