Amid uncertainty about the future of the entertainment industry, Paramount Global is reportedly reducing its workforce by 15 percent in a new round of layoffs.
The reported cuts aim to reduce Paramount’s spending by $500 million in 2025, and will be focused primarily on marketing, communications, legal and technology. Paramount Global co-CEO Chris McCarthy announced the changes during the company’s second-quarter earnings conference call on Thursday.
“These steps will be implemented over the next few weeks and will be substantially completed by the end of the year,” McCarthy said. “As you can imagine, this is a difficult decision. Paramount has incredibly talented people and these steps are not a reflection of their contributions; rather, they are necessary to transform streaming and transform our organization for what’s next.”
The announcement came after co-CEOs Brian Robbins and George Cheeks announced plans to cut spending by $500 million in June. According to TheWrap:
Chief Financial Officer Naveen Chopra, speaking of the huge savings target, added that cost reductions “do not come solely from, or necessarily at, headcount reductions. While most of the near-term savings of the $500 million will come from headcount reductions, we believe we have opportunities to achieve significant cost reductions in other areas,” Chopra said in the earnings call.
Earlier this week, Paramount Global has divested its ownership stake in comic book and pop culture brands. Both companies were acquired by Nashville-based Savage Ventures in 2018 and together employ more than 40 staff.
The entertainment industry took a hit this week when Warner Bros. Discovery Inc.’s stock price plummeted $11.2 billion after the company reported weaker-than-expected second-quarter earnings on Wednesday, with both sales and profits falling short of expectations. Yahoo Finance.
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