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Paramount Global Announces Job Cuts: 3.5% of U.S. Workforce Affected

In a move to streamline operations and adapt to shifting market conditions, Paramount Global has confirmed that it will reduce its U.S.-based workforce by 3.5%. This decision, impacting several hundred employees, is part of the media giant’s broader strategy to manage the ongoing challenges of cord-cutting and prepare for its proposed merger with Skydance Media.

Why the Layoffs?
Paramount, which has approximately 18,600 full- and part-time employees worldwide, is facing the combined pressure of the shrinking traditional pay-TV market and the wider macroeconomic uncertainty. Like many other media giants, Paramount is grappling with the long-term effects of changing consumer preferences, which have increasingly shifted away from traditional cable TV subscriptions in favor of streaming services.

In a memo obtained by CNBC, Paramount's top executives—CEO George Cheeks, President of MTV Entertainment Studios Chris McCarthy, and Chairman of Film & Television Brian Robbins—outlined the company’s decision to proceed with the layoffs, scheduled to take effect imminently.

A Streamlining Strategy Amid Larger Shifts
This round of job cuts follows earlier decisions made by the company, including the announcement in August 2024 that Paramount would reduce its U.S. workforce by an additional 15%. As part of an ongoing restructuring effort, the media giant has been exploring ways to optimize its operations and reduce expenses. These steps are essential as Paramount works to better position itself for the future, especially in light of the intensifying competition in the streaming sector.

The company’s recent moves also come as Paramount continues to pursue regulatory approval for its proposed merger with Skydance Media, a transaction that is set to reshape its business structure and operations. This merger is expected to help the company better compete in the ever-evolving landscape of entertainment and digital media.

What’s Next for Paramount?
The layoffs are expected to be felt across various departments within the company. However, in an effort to manage costs and optimize resources, there may be additional workforce reductions outside the U.S. in the future, according to the memo.

“We understand how challenging this is for everyone involved. We are grateful for the dedication and contributions of all of our employees, and these changes are necessary to ensure Paramount’s long-term success,” said the CEOs in the memo.

Industry-wide Layoffs Amidst Shifting Media Landscape
Paramount is not the only company making cuts. In recent months, other media giants like Disney and Warner Bros. Discovery have also reduced their workforces, a trend that highlights the broader economic pressures impacting the entertainment industry. As companies move towards more streamlined, cost-effective operations, layoffs have become a common strategy to cut expenses in an increasingly competitive and uncertain market.

The Bigger Picture: Navigating Economic and Technological Challenges
Paramount’s efforts to stay competitive come amid broader changes in the media sector. As the popularity of streaming services continues to grow, traditional cable providers are seeing a decline in subscribers, forcing companies like Paramount to adapt rapidly. Moreover, the increasing reliance on digital platforms means that Paramount must rethink its business model, focusing more on streaming and digital content distribution while reducing reliance on older, legacy business models.

In addition to internal restructuring, Paramount’s focus is also on expanding its global reach and diversifying content offerings to stay ahead of competitors in a fast-evolving industry. By reducing its workforce and cutting costs, the company hopes to emerge as a more agile, forward-looking entity capable of navigating the ongoing disruptions in the media landscape.

The job cuts at Paramount come at a pivotal moment for the company, as it seeks to realign itself in response to shifting consumer behaviors and economic pressures. As the media industry continues to adapt to technological changes, Paramount’s restructuring efforts may serve as a blueprint for others facing similar challenges. In the end, the company’s goal is clear: to position itself for long-term success in a rapidly changing industry.

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