Key Takeaways
- Paramount Global is reportedly moving forward Tuesday with the second phase of employee cuts it announced in August, according to a staff memo.
- Paramount said last month that it would lay off roughly 2,000 employees, or 15% of its workforce, ahead of its planned merger with Skydance Media.
- Paramount’s co-CEOs called the decision part of a plan to “accelerate streaming profitability.”
Paramount Global (PARA) is moving ahead with the second phase of the roughly 15% workforce reduction it announced last month.
The company’s three co-chief executives said in a memo to staff Tuesday that 90% of the layoffs would be complete by the end of the day, according toThe Hollywood Reporter. In August, the company said it would lay off about 2,000 employees as part of a plan to save at least $500 million in annualized costs before its planned merger with Skydance Media.
Seeking To ‘Accelerate Streaming Profitability’
The owner of CBS, MTV, and Nickelodeon said the steps were part of a plan to “accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses.”
Paramount previously said it expects Paramount+ to reach domestic profitability in 2025. Paramount+ is currently promoting a discount on its annual rate, part of a larger pattern among streaming services ahead of the holiday season.
In July, Paramount in July agreed to an $8 billion merger deal with Skydance Media and private-equity partners that is expected to close in the first half of 2025.
Paramount stock was up nearly 1% on Tuesday afternoon. For the year, the shares are down almost 30%.