Paramount executives are currently considering on cutting many jobs in February, as the media company finds itself at a critical situation. Earlier reports from The Wall Street Journal had anticipated layoffs in early 2024, but according to the latest update from Deadline, the number of employees affected has decreased from over 1,000 to hundreds. Nonetheless, the job cuts are imminent.
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As per the report, layoffs with specific targets have been assigned to managers at Paramount throughout the organization. These layoffs are expected to take place in February 2024.
The decision comes as Shari Redstone, who owns approximately 80% of the voting share in Paramount through National Amusements, is allegedly considering auctioning their control of the company.
Paramount Global, previously known as ViacomCBS Inc., came into market on December 4, 2019, after CBS Corporation and Viacom merged. This union occurred as a result of both entities separating from the original Viacom on December 31, 2005. Following its Q4 earnings presentation, the company decided to rebrand itself as Paramount Global on February 16, 2022.
As of December 2022, Paramount has a workforce of approximately 24,500 employees spread across many divisions such as Paramount Pictures, CBS Entertainment Group, Paramount Media Networks, Paramount International Networks, Paramount Streaming, and Paramount Consumer Products.
Paramount is anticipated to face a range of challenges in 2024. The company aims to achieve positive earnings growth, but it is encountering difficulties due to a weak advertising market and ongoing losses in its streaming endeavors. In the third quarter alone, Paramount+ recorded an operating loss of $238 million. Additionally, the service remains significantly smaller than the leading players in the market, with even its ad-supported free version, Pluto, attracting a larger audience.
According to the WSJ, whether Redstone wants to continue owning Paramount or pursue other interests is a factor in this situation. The WSJ report also mentions that Paramount has carriage deals that are expiring soon, including Charter's Spectrum in the spring.
Recently, Paramount reached a deal with Comcast to keep its networks on Xfinity TV. In 2024, there could be further changes for Paramount, with the possibility of the company dividing into different parts, such as the cable network, stations, Pluto, and Paramount+ separating from the movie and TV production studios.
