New York (CNN) Paramount Media Networks announced Tuesday that it will shut down MTV News and cut its American workforce by 25%, bringing to an end the news division of the popular music video network that once covered a range of issues from pop culture to politics and became a household name for Generation X. and millennial teens.
Division chief Chris McCarthy said in a note to employees Tuesday that despite the media giant’s “success” in broadcasting, the company is still “feeling pressure from broader economic headwinds like many of our peers.”
He continued, “As a result, we have made a very difficult but necessary decision to reduce our home team by approximately 25%.” “By eliminating some units and streamlining others, we will be able to reduce costs and create a more efficient approach to our business as we move forward.”
McCarthy said the employees affected by the layoffs were to be notified in person on Tuesday.
The decision to shut down MTV News, which has been downsized dramatically in recent years, comes less than a month after BuzzFeed announced it was dropping its award-winning news division and Vice Media canceled its popular show “Vice News Tonight” as part of a broad restructuring.
MTV News’ meteoric rise began in the 1980s when Rolling Stone editor-turned-television Kurt Loder joined the network and launched “The Week in Rock,” among other specials. During the 1990s, MTV News also provided an alternative to traditional news that appealed to young Americans.
The cuts, which McCarthy described as a “strategic realignment,” are intended to streamline units and reduce overall costs, allowing the company to be more efficient going forward.
A Paramount spokesperson said that in addition to MTV News, some units of the company, most of which were operations, had been eliminated entirely.
Nearly every major news, entertainment and technology company has had to reduce its workforce in recent months as it grapples with a declining advertising market and other industry challenges.
CNN, The Washington Post, NPR, Gannett, Vox Media, NBC News and others have also reduced their workforces in recent months.
Correction: An earlier version of this story incorrectly stated that the department was cutting jobs. Paramount Media Networks division cuts staff by 25%.
