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Paramount Global Co-CEO Chris McCarthy said Thursday the company will cut about 15% of its U.S. workforce.
The media company revealed its plans to lay off employees as it released its second-quarter financial results.
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McCarthy said the layoffs will “focus primarily on two areas: first, redundant positions in marketing and communications; and second, simplifying our corporate structure, reducing staff in finance, legal, technology and other support functions.”
According to Reuters news agency, about 2,000 employees will lose their jobs in the layoffs.
Axios told employees on Tuesday that 50 people across the company will be laid off due to “tectonic shifts” in the U.S. media industry. (Getty/Getty Images)
McCarthy added that these operations will take place “over the coming weeks” and will be largely completed “by the end of the year.”
“We have incredibly talented people at Paramount, and these actions do not reflect their contributions, but are essential to transforming our organization for the future,” he said.
Paramount Global linked the upcoming staff cuts to a “strategic plan” that includes streamlining its organization.
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“We announced in June that we had identified $500 million in annual cost savings across the company. This is included in the $2 billion in cost efficiencies that Skydance has identified,” McCarthy said.
The Paramount logo is displayed at Columbia Square along Sunset Boulevard in Hollywood, California on March 9, 2023. (Photo: Patrick T. Fallon/AFP via Getty Images/Getty Images)
In addition to streamlining its organization, Paramount Global has identified transforming its direct-to-consumer streaming business and improving its asset mix as key parts of its strategic plan.
During the earnings call, the company said it would see an estimated $300 million to $400 million in restructuring costs in the third quarter related to the job cuts. According to CFO Naveen Chopra, the “cash impact” of the cuts “will occur over the next few quarters.”
Paramount Global reported total revenue of $6.81 billion in the second quarter, down 11% year over year.
Paramount agrees to merge with Skydance
Meanwhile, its quarterly operating loss came to nearly $5.32 billion, as the company noted it took a $5.98 billion goodwill impairment charge for its cable networking unit in the quarter.
Paramount Global linked the upcoming staff cuts to a “strategic plan” that includes streamlining its organization. (Artur Widak/NurPhoto via Getty Images / Getty Images)
The three Paramount CEOs said the company will “continue to aggressively execute on its strategic plan” going forward.
“We are confident that our plan will drive long-term value by leveraging our extensive content offering as we continue to transform Paramount for the future,” they said.
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