Janice R. Andrews
Paramount is cutting 15% of its U.S. workforce, impacting approximately 3,000 employees. This decision follows a disappointing second-quarter earnings report, where the company’s revenue fell short of expectations, coming in at $6.81 billion instead of the anticipated $7.21 billion. The layoffs will mainly affect staff in marketing, communications, legal, and finance departments.
This move marks the second major workforce reduction for Paramount this year. In February, the company laid off 3% of its employees, despite a 3% increase in revenue attributed to its streaming and film businesses. The current 15% reduction comes as the company struggles to meet revenue expectations, missing the mark by about 4%.
Paramount’s CEOs cited the evolving industry landscape as a key factor in their decision. In a memo to staff, they emphasized the need for these changes to strengthen the business. The layoffs will occur in three phases, with 90% of the cuts expected to be completed by the end of September.
The timing of these layoffs coincides with Paramount’s forthcoming merger with Skydance, announced in June. This merger, pending regulatory approval, may be influencing the company’s decision to streamline its operations.
In addition to workforce reductions, Paramount has been implementing other cost-saving measures, including raising prices for its streaming services and removing entire libraries of content. These steps reflect the company’s broader strategy to navigate financial challenges and adapt to the rapidly changing media landscape.
For the affected employees, this latest round of layoffs represents another difficult chapter in a year marked by uncertainty within the entertainment industry.
