Paramount starts layoff rounds: How many will be affected?

Paramount Global has started the first of three rounds of layoffs.

The cuts, which have long been touted as a way to reduce costs as the company struggles with declining linear revenue and heavy debt while also in the middle of being acquired by Skydance Media, have been previously outlined as a key part of execs strategic plan to cut costs.

All told, Paramount is looking to cut its U.S. headcount by about 15%, which is expected to be around 3,000 people by the end of the process.

The cuts are expected to save around $500 million a year.

Earlier, Paramount had said that many cuts would come in marketing and communications, with administrative teams such as finance and legal also expected to be heavily affected.

Two additional stages of cuts will come later, with 90% of the cuts expected to take place before September 2024.

Paramount last made layoffs in February 2023, which represented around 3% of its employees. 

The company recently announced it would be taking a $6 billion write-down on the value of its linear cable networks, a move that did not sit well with investors.

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Full text of the memo from co-CEOs George Cheeks, Chris McCarthy and Brian Robbins below:

Hi Everyone,

In June, we laid out our Strategic Plan to return Paramount to profitable growth, which includes streamlining the organization and cutting costs by $500 million on an annualized basis. As we continue to advance our plan, we announced on our earnings call last week that we will be reducing our US-based workforce by approximately 15%, focusing on redundant functions and streamlining corporate teams.

This process will take place in three phases, starting today and continuing through the end of the year. We expect 90% of these actions to be complete by the end of September.

We know that having to part ways with teammates whose contributions have been instrumental to our success is incredibly hard. In partnership with our HR leaders, we are committed to providing support to employees transitioning on from Paramount and to our teams who will need to adapt to these changes. During this time, we ask that everyone please be mindful of how this news may affect your colleagues and offer support to those who need it.

The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in our direction forward. We understand that you may have questions about next steps, and while we may not be able to provide all the answers at this time, we will continue to update you on our progress.

We remain ever grateful for your hard work in delivering results for our audiences and communities.

Best,

George, Chris & Brian