Paramount Global is set to undergo another round of layoffs, with cuts expected to reduce the company’s U.S.-based workforce by 15%.
The cuts, aimed at achieving Paramount’s plan to trim $500 million by 2025, will be primarily focused on two areas: marketing and communications, as well as finance, legal, technology and other support functions. The head-count reductions are expected to hit by the end of 2024, Paramount Global co-CEO Chris McCarthy said while sharing the news during the company’s Q2 earnings call on Thursday.
“These actions will take place in the coming weeks and will largely be completed by the end of the year,” McCarthy said. “As you can imagine, these are difficult decisions to make. We’ve incredibly talented people at Paramount and these actions are not a reflection of their contributions. Rather, they are necessary to transform our organization for the future next, transforming streaming.”
Co-CEOs McCarthy, Brian Robbins and George Cheeks first unveiled their goal to save $500 million in cost-cutting measures in June as part of the Office of the CEO’s long-term strategic plan. While the plan was announced before the merger with Skydance Media was made official, McCarthy said the $500 million is “included in the $2 billion of cost efficiencies identified by Skydance.”
With the hefty savings goal, CFO Naveen Chopra added that reductions in cost “go beyond head count” and “won’t all happen necessarily at the same point in time.” “We’ve made most of the $500 million savings that you’ll see in the near term is head-count-related, but we do think that there are opportunities to significantly reduce costs in other areas as well,” Chopra said on the earnings call.
Earlier this week, Paramount Global let go of its ownership of the ComicBook and PopCulture brands as Nashville-based Savage Ventures acquired both companies. Both companies were acquired in 2018 and employ a combined staff of over 40 staffers.
Disney Entertainment Television underwent layoffs impacting roughly 140 staffers last week, and Fox Entertainment laid off approximately 30 employees as as part of a company-wide restructuring in July.
