Paramount Global, the media company behind Paramount Pictures, has announced plans to lay off a significant portion of its workforce in the coming weeks. The decision comes as the company looks to streamline its organization and strengthen its business in the face of industry changes.
In a leaked memo signed by co-CEOs Chris McCarthy, Brian Robbins, and George Cheeks, employees were informed that the layoffs would take place in three phases, with 90% of the actions expected to be complete by the end of September. The company acknowledged the difficulty of parting ways with valued team members but expressed confidence in the direction forward.
The layoffs are part of a strategic plan that includes transforming the company's direct-to-consumer streaming business and optimizing its asset mix. Paramount Global also recently agreed to a merger with Skydance as it looks to position itself for future growth.
During an earnings call, the company revealed that it expects to incur a restructuring charge of $300-$400 million in connection to the job cuts, with the cash impact spread out over the next several quarters. Despite the challenges, Paramount Global remains committed to providing support to employees transitioning out of the company and to those who will need to adapt to the changes.
In the second quarter, Paramount Global reported a total revenue of $6.81 billion, down 11% year over year. As Paramount Global moves forward with its restructuring efforts, employees and industry observers will be watching closely to see how the company navigates these changes and positions itself for success in the evolving media landscape.