Paramount Global to lay off 15% of its US workforce
Paramount Global will cut about 15% of its U.S.-based workforce, co-CEO Chris McCarthy said on Thursday.
The media company disclosed its plans for the layoffs as it released its second-quarter financial results.
McCarthy said the layoffs will be "primarily focused on two areas: first, redundant functions within marketing and communications; second, streamlining our corporate structure, reducing our headcount in finance, legal, technology and other support functions."
Some 2,000 staffers will lose their jobs in the layoffs, according to Reuters.
The Paramount logo is displayed at Columbia Square along Sunset Blvd in Hollywood, California on March 9, 2023. (Credit: PATRICK T. FALLON/AFP via Getty Images / Getty Images)
They will occur "in the coming weeks" and largely finish "by the end of the year," McCarthy said.
"We have incredibly talented people at Paramount and these actions are not a reflection of their contributions," he said. "Rather, they are necessary to transform our organization for the future."
Paramount Global linked the upcoming headcount reduction to a "strategic plan" that involves streamlining its organization.
"We announced in June that we’ve identified $500 million in annual run rate cost savings across the company. This $500 million is included in the $2 billion of cost efficiencies identified by Skydance," McCarthy said.
In addition to streamlining its organization, Paramount Global has identified transforming its direct-to-consumer streaming business and optimizing its asset mix as key parts of its strategic plan.
During the earnings call, the company said it will see a roughly $300-$400 million restructuring charge in the third-quarter in connection to the job cuts. The "cash impact" of the cuts "will occur over the next several quarters," according to CFO Naveen Chopra.
Paramount Global generated $6.81 billion in total revenue during the second quarter, down 11% year over year.
PARAMOUNT AGREES TO MERGER WITH SKYDANCE
Its quarterly operating loss, meanwhile, was nearly $5.32 billion, with the company noting it had a $5.98 billion goodwill impairment charge for its cable networks unit in the quarter.
Paramount’s three co-CEOs said the company will "continue to aggressively execute" its strategic plan moving forward.
"We are confident that our Plan will drive long-term value by leveraging our broad hit content as we continue to transform Paramount for the future," they said.