Paramount Advertising has become the latest victim of the media giant’s cuts towards 15% of its U.S. workforce designed to help generate annual run rate cost savings of $500 million across the company.
The team is in charge of managing domestic multi-platform ad sales across CBS, BET, Comedy Central, MTV, Nickelodeon, Paramount+, Pluto TV and other properties. It is unclear how many employees from the division have been impacted.
“Today is going to be a difficult day as this process will affect our org and we will be parting ways with talented and valued teammates and friends,” Paramount Advertising president John Halley said in a Tuesday memo to staff. “I want to acknowledge how unsettling this may feel, as this is not the first time our org has shouldered impacts. None of this is easy and no decision was made lightly.”
The layoffs, which are part of co-CEO Chris McCarthy, George Cheeks and Brian Robbins’ long-term strategic plan, began last month and are expected to be about 90% complete by the end of September and impact between 2,000-3,000 total jobs.
As part of the cuts, which are focused on “redundant functions and streamlining corporate teams,” the company previously shuttered Paramount Television Studios, impacting about 20-30 jobs.
Additional impacted areas include marketing and communications, finance, legal, technology and other support functions.
The move comes as David Ellison’s Skydance Media is set to merge with the studio in the first half of 2025 after acquiring controlling shareholder Shari Redstone’s National Amusements.
Following the $8 billion deal’s close, Oracle co-founder and David’s father Larry Ellison will own 77.5% of National Amusements through a trust and series of corporations. The remainder of NAI will be owned by RedBird Capital Partners founder Gerry Cardinale’s RB Tentpole LP, which will control 22.5% if the deal goes through. David Ellison would then serve as Paramount’s chairman and CEO.
In connection with the above $500 million, Paramount expects to incur a restructuring charge of $300-$400 million in the third quarter, with a cash impact that will occur over the next several quarters.
In addition to the cuts, Paramount has hired bankers to help the company with possible asset sales. TheWrap exclusively reported that Paramount sold the ComicBook and PopCulture websites to Nashville-based Savage Ventures for an undisclosed amount. Four individuals familiar with the co-CEOs’ plans previously told TheWrap that other possible assets that could be put up for sale include Pluto TV, BET, VH1 and the Paramount lot, which would be leased back for the studio’s use. The company is also in “active discussions” about potential strategic partnerships or joint ventures with other streamers.
Paramount shares, which closed at $10.44 apiece at the end of Tuesday’s trading session, have fallen 23% in the past year and 27% year to date. News of the layoffs was first reported by Deadline.
