Paramount Global will lay off about 800 people, or about 3% of its workforce, as the company aims to cut costs and return to revenue growth this year, people said Tuesday.
In a memo to employees seen by Reuters, CEO Bob Bakish said affected employees based in the U.S. would be notified on Tuesday, and the layoffs would apply to employees outside the U.S. It added that some office employees will also be affected.
The media industry is grappling with changing landscapes, including streaming’s growing dominance over traditional television and the impact of last year’s Hollywood strikes. A weak advertising market and economic uncertainty are adding to the pressure.
“These adjustments will help us build on our momentum and execute on our strategic vision for next year, and we are confident there is much to be excited about,” Bakish said in a note. wrote.
Paramount’s stock, which declined to comment on the layoffs, fell more than 4% on the Nasdaq.
Bakish announced in January that the company would lay off an unspecified number of employees, citing the numerous challenges facing the entertainment industry.
Bakish said Paramount will focus its resources on its “strongest and most resonant franchises, films and series” and produce fewer domestic and international originals.
The studio is home to film series such as “Top Gun” and “Mission: Impossible,” as well as the hit TV show “Yellowstone.”
Overall, more than 34,000 workers have been laid off by 141 technology companies around the world so far this year, according to tracking website Layoffs.fyi. Major media outlets such as the Los Angeles Times and Business Insider have also cut staff.
In January, Reuters reported, citing sources familiar with the matter, that Skydance Media CEO David Ellison was considering an all-cash deal to acquire National Amusements, the parent company of Paramount Global. It was reported that there was.
The layoffs come as the Paramount-owned CBS broadcast network announced the Super Bowl drew a record 123.4 million viewers across television and streaming platforms, according to preliminary Nielsen ratings. It was held the next day.
