OAN Staff Abril Elfi
11:12 AM – Tuesday, August 13, 2024
Paramount Global has announced that they will be cutting 15% of its workforce in the states.
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The first of three stages will begin on Tuesday and 90% of the cuts are set to be completed by the end of September.
A memo by George Cheeks, Chris McCarthy, and Brian Robbins, three company co-CEOs, emailed a statement to employees that detailed the cuts.
“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business,” the co-CEOs wrote. “We know that having to part ways with teammates whose contributions have been instrumental to our success is incredibly hard,” they added. “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.”
The cuts come as the company plans to save $500 million in run-rate costs annually.
Last February, the company let go of 3% of employees as a result of several financial difficulties, including the effects of its diminishing cable TV business.
Paramount also acknowledged the value drop of its cable networks when it reported second-quarter earnings last week, noting a loss of $6 billion in assets.
The layoffs also come with the impending close of Paramount’s “go-shop” period, during which other potential buyers may attempt to buy the business. This period began when Shari Redstone and her media company, National Amusements, agreed to sell Paramount to a group headed by Skydance and RedBird Capital.
Nevertheless, Paramount’s co-CEOs must continue to manage the business to the best of their abilities, carrying out their strategic plan, since the deal is unlikely to close until well into 2025.
The full memo reads:
“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”
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