Paramount will begin cutting 15 percent of its U.S.-based workforce beginning today.
Paramount co-CEOs Chris McCarthy, Brian Robbins and George Cheeks announced to staff in a memo that the planned layoffs will begin on Tuesday, and happen in three phases. The first phase begins today, and will continue through the end of 2024. They add that 90 percent of the cuts will be done by the end of September.
“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in our direction forward,” they wrote in their memo. “We understand that you may have questions about next steps, and while we may not be able to provide all the answers at this time, we will continue to update you on our progress.”
The executives announced their planned cuts last week on the company’s last quarterly earnings call, citing the need to hit $500 million in cost savings this year. The move will shed thousands of jobs, with Paramount having more than 21,000 employees (it previously laid off around 800 people earlier this year.
While every division is expected to be impacted, the executives write that “redundant functions” and “streamlining corporate teams” will be the immediate focus.
The layoffs also come as Paramount nears the end of the “go-shop” period, in which other bidders can emerge to try and buy the company, after Shari Redstone and her National Amusements agreed to sell Paramount to a consortium led by Skydance and RedBird Capital.
However, with a deal unlikely to close until well into 2025, Paramount’s co-CEOs have to continue running the company to their best abilities and executing on their strategic plan.
Read the memo:
Hi Everyone,
In June, we laid out our Strategic Plan to return Paramount to profitable growth, which includes streamlining the organization and cutting costs by $500 million on an annualized basis. As we continue to advance our plan, we announced on our earnings call last week that we will be reducing our US-based workforce by approximately 15%, focusing on redundant functions and streamlining corporate teams.
This process will take place in three phases, starting today and continuing through the end of the year. We expect 90% of these actions to be complete by the end of September.
We know that having to part ways with teammates whose contributions have been instrumental to our success is incredibly hard. In partnership with our HR leaders, we are committed to providing support to employees transitioning on from Paramount and to our teams who will need to adapt to these changes. During this time, we ask that everyone please be mindful of how this news may affect your colleagues and offer support to those who need it.
The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in our direction forward. We understand that you may have questions about next steps, and while we may not be able to provide all the answers at this time, we will continue to update you on our progress.
We remain ever grateful for your hard work in delivering results for our audiences and communities.
Best,
George, Chris & Brian