The media and entertainment industry is facing another wave of layoffs in 2024 as companies grapple with rising costs and financial challenges. Paramount Global, YouTube, Universal Music Group, Pixar, Business Insider, Los Angeles Times, and Sports Illustrated are among the major players that have announced job cuts.
Paramount Global, the subject of ongoing merger and acquisition rumors, is set to reduce its workforce globally. In an internal memo obtained by Yahoo Finance, CEO Bob Bakish emphasized the need for the company to operate more efficiently and spend less. While these decisions are difficult, they are seen as necessary for the company’s path to earnings growth.
Even tech giant Alphabet, the parent company of YouTube, has not been immune to layoffs. The company recently cut 100 employees from its creator management and operations divisions, marking its first corporate restructuring in a decade. This reduction comes as Alphabet aims to streamline its workforce and reduce headcount across various teams.
Universal Music Group, one of the industry’s leading record labels, is also planning significant layoffs in the coming months. While the company did not fully confirm the report, a spokesperson acknowledged the need to create efficiencies in other areas of the business to remain responsive to the market while benefiting from its scale.
Pixar, Disney’s animation unit, is reportedly laying off up to 20% of its workforce. The cuts come as streaming profitability lags behind and the company’s box office performance faces challenges. Although Disney has not yet responded to requests for confirmation, these layoffs reflect the industry-wide struggles faced by animation studios.
Business Insider, an online publication owned by German publisher Axel Springer SE, is also reducing its staff by approximately 8%. CEO Barbara Peng explained that this decision is part of the company’s plan to focus efforts on its target audience and future vision. This downsizing aligns with a broader trend seen across major news organizations in the country.
The Los Angeles Times recently announced significant layoffs, affecting around 20% of its newsroom or at least 115 staff members. This reduction is the largest in the newspaper’s 142-year history and is attributed to the challenging advertising environment, leading to a loss of up to $40 million annually. The owner of the Los Angeles Times, Dr. Patrick Soon-Shiong, deemed these cuts necessary to address the financial strain.
Sports Illustrated, a renowned sports publication, faced a major setback as its publisher, Arena Group Holdings, had its license revoked. As a result, most, if not all, of the staff were laid off. Arena Group failed to make a quarterly licensing payment to Authentic Brands Group, which has owned the magazine since 2019. This unfortunate turn of events followed a 10-year publishing rights deal between Authentic Brands Group and Arena Group.
The media and entertainment industry’s struggles continue to unfold in 2024, with layoffs becoming a recurring theme. Rising costs and debt-ridden balance sheets have forced companies to make difficult decisions to ensure their long-term viability. As the industry evolves and faces new challenges, it remains to be seen how these companies will navigate the changing landscape while preserving their core operations and talent.
