Paramount Global executives have warned of further job cuts as part of a $500 million cost-cutting plan to stem a “totally unacceptable” decline in the media giant’s profitability.
About 500 employees learned of the tough plans, which also include revamping the Paramount+ streaming service and hiring bankers to sell unspecified assets, during an all-hands meeting Tuesday with the company’s three co-CEOs, Brian Robbins, Chris McCarthy and George Cheeks.
The news comes shortly after merger talks between Paramount’s controlling shareholder and media heiress Shari Redstone and Skydance Media, the makers of the “Mission: Impossible” series, collapsed earlier this month.
Redstone is reportedly currently in talks with media mogul Edgar Bronfman Jr., who is partnering with buyout firm Bain & Company to explore a possible acquisition.
While McCarthy cited revenue growth of 13% between 2018 and 2023, he said Paramount’s operating income before depreciation and amortization fell 61% over the same period, highlighting the need to slim down the company overall.
“Let me be clear: a 61 percent decline in profits is simply unacceptable,” McCarthy said. “We need to act now to reverse this trend.”
The co-CEOs did not disclose the number of looming job cuts and told attendees during a question-and-answer session that they were not prepared to reveal a timeline for the cuts. According to The Hollywood Reporter.
As another part of their three-pronged plan, the co-chief executives said they had hired bankers to sell unspecified assets to pay down debt.
This isn’t the first time Paramount has tried to sell assets: Last summer, it backed out of plans to sell its BET network after bidders, including Tyler Perry, failed to meet the $3 billion asking price, The Washington Post reported.
The company sold publishing company Simon & Schuster for $1.62 billion last year.
Paramount sold CBS’s New York Black Rock building for $760 million and CBS’ Studio City site for $1.85 billion in 2021.
McCarthy said Paramount’s streaming platform has made progress since the June 4 shareholders meeting.
Paramount+ subscribers reached 71 million, up from 67.5 million in the previous quarter, he said.
Paramount fired former CEO Bob Bakish, who had strongly opposed the merger with Skydance, in April and established a three-person “Office of the CEO.”
