Paramount Global unveils “phase two” of layoffs

Paramount Global announced a second wave of staff cuts Tuesday morning, part of a larger bid by the owners of CBS, Comedy Central and MTV to cut costs at a strained time for traditional media companies.

In a memo to employees, Paramount co-CEOs George Cheeks, Chris McCarthy and Brian Robbins told employees, “To prepare Paramount for continued success, we are taking these actions, and after today, 90% of these reductions will be complete.” “ .”

Like its contemporaries, Paramount is struggling to turn a profit as more viewers of its television programs and films switch to video streaming and digital interaction. The dynamics make the task of assembling the large, simultaneous audiences that advertisers and distributors crave significantly more complex.

Paramount announced in August that it would cut 15% of its U.S. workforce ahead of its planned merger with Skydance Media – layoffs estimated to affect about 2,000 employees.

The company expects to incur restructuring charges of $300 million to $400 million in the third quarter as a result of the layoffs.

“Days like this are never easy,” the executives said. “It is difficult for us to say goodbye to valued colleagues, and to those who are leaving us, we are incredibly grateful for their countless contributions.”

The company declined to identify the exact areas of its portfolio where the staff cuts were made, but the IBEW, a union representing CBS employees, noted in a statement Monday that the affected employees “as editors, “Worked in media recording and distribution as well as in show production.”

“We are disappointed that CBS has been unable to retain these highly skilled professionals,” Robert Prunn, director of broadcast and telecommunications at IBEW, said in a statement. “IBEW members have been producing CBS shows since before television was invented, and these layoffs are a difficult pill to swallow.”