Paramount Global, a media conglomerate, is poised to reduce its workforce by approximately 800 employees, constituting about three percent of its total staff. This decision stems from persistent challenges, including losses, the impact of pay-TV cord-cutting, a sluggish advertising market, and a streaming operation that has incurred losses. CEO Bob Bakish, in an internal memo to the staff, emphasized the pivotal priority of restoring the company to a trajectory of earnings growth.
The media company said the layoffs would affect workers in the United States and offices worldwide. It did not say how many staffers in each country would be affected. Affected workers in the US will be notified on Tuesday, with those in other countries to be told later. Bakish said the company was aiming to return to earnings growth this year.
Paramount Global, which also owns the Paramount Pictures movie studio and TV networks, including Britain’s Channel 5 and Comedy Central and America’s MTV and Nickelodeon, reported a loss of nearly $650 million last year. The firm struggles to need help to compete with streaming giants such as Netflix and Amazon, which are taking a larger share of viewers. The company’s shares have lost more than half their value since the end of 2022.
Two days after announcing record Super Bowl viewership figures, Paramount Global will cut about 800 jobs, roughly 3% of its workforce. The parent of CBS and Nickelodeon made the announcement hours after the network broadcast Sunday’s record-breaking Super Bowl LVIII, which an average of 123.4 million people watched.
The company isn’t alone in facing challenges as the media landscape shifts, with streaming services gaining popularity and cable and satellite subscriptions declining. The company’s namesake film studio has struggled as movie attendance has failed to recover to pre-crisis levels. Its online TV service, Paramount, has been losing money, and its movie theater chains have seen declining sales. The company’s parent, National Amusements, is also reportedly considering selling its stake.