Paramount Layoffs Begin; Co-CEOs Tell Staffers Media Company Has Reached “An Inflection Point” As “Industry Continues To Evolve”

Paramount Global has initiated the first wave of layoffs as it looks to reduce its U.S. workforce by 15%.

The first of three stages of the staff reductions is beginning today, with 90% of the planned cuts to be completed by the end of September. George Cheeks, Chris McCarthy and Brian Robbins, the three members of the Office of the CEO, laid out details this morning in a memo to employees (read it below).

“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business,” the Co-CEOs wrote.

“We know that having to part ways with teammates whose contributions have been instrumental to our success is incredibly hard,” they added. “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,”

The cuts are part of an effort to lower annual expenses by $500 million. Paramount has implemented multiple rounds of layoffs over the past year as it has confronted the financial impact of its declining linear TV business. Last week, in reporting second-quarter earnings, the company took a multi-billion-dollar writedown on its cable networks. Skydance Media is poised to take control of the company in a merger to be completed by the first part of 2025.

During a call with Wall Street analysts to discuss the quarterly results, McCarthy said marketing and communications would be one of two areas to be targeted in the reductions. The other will be support functions including legal, finance and other areas of the company’s administrative operations.

Here is the full 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