Paramount Global Prepares for Significant Layoffs Amid Corporate Restructuring
Amid speculation about its future, Paramount Global is proceeding with a new wave of staff reductions in February, sources tell Deadline.
Paramount Global, a key player in the media industry, is reportedly gearing up for a substantial round of layoffs in February. Sources close to Deadline have indicated that these cuts will affect hundreds of employees across the company's various divisions.
Speculation about these layoffs has been circulating, following a Wall Street Journal report in December suggesting the possibility of over 1,000 job eliminations in early 2024 as a cost-saving measure. While the actual number of layoffs is expected to be in the hundreds, it signifies a major impact across virtually every department at Paramount Global. Senior executives are said to be tasked with meeting specific reduction targets.
The exact date of the layoffs is still unconfirmed, but February 13th has emerged as a rumored date. The process may require impacted employees to depart swiftly, potentially within three days of notification — a practice not unfamiliar to Paramount, as similar quick exits were reported during pandemic-related layoffs.
Paramount Global has undergone several rounds of layoffs in the past 14 months, affecting various arms of the company including CBS Studios, Paramount TV Studios, Showtime, and the closure of its MTV News division after 36 years.
Amidst these developments, National Amusements, Inc. (NAI), led by Shari Redstone and holding the majority of Paramount Global's voting shares, is reportedly entertaining acquisition offers. Interested parties are said to include Apollo Global Management, Skydance Media, and RedBird Capital, who have been in contact with the investment banks advising NAI, BDT & MSD Partners.
NAI, in addition to its significant stake in Paramount Global, also owns a collection of movie theaters.
Paramount, established through the merger of Viacom and CBS in 2019, has faced numerous challenges, including the decline of traditional pay-TV, a weakened advertising market, losses in its streaming ventures, and instability in the film industry, despite recent successes like "Mean Girls". Currently, the company's stock value is less than half of what it was post-merger.
What's Your Reaction?
