Paramount Global, one of the leading entertainment companies in the world, has announced a round of layoffs as it engages in discussions regarding potential mergers and acquisitions (M&A). The company is set to lay off approximately 800 employees globally, which accounts for around 3% of its total workforce. The decision to downsize comes as Paramount Global aims to reduce costs and streamline its operations.
CEO Bob Bakish addressed the layoffs in a memo to staff, which was obtained by Variety. While the memo did not specify the exact number of employees being let go, sources have confirmed that approximately 800 individuals across various divisions of the company, including CBS, Paramount Pictures, Paramount+, Pluto TV, Showtime, Comedy Central, Nickelodeon, and MTV, will be affected.
In the memo, Bakish highlighted Paramount Global’s recent successes, including the record-breaking viewership of Super Bowl LVIII, which he referred to as a “blockbuster” event. He also mentioned the upcoming slate of new and returning primetime programming on CBS and expressed excitement about Jon Stewart’s return to Comedy Central’s “The Daily Show.” Bakish emphasized that these layoffs are a necessary step to ensure the company’s future growth and execution of its strategic vision.
As of the end of 2022, Paramount Global reported having 24,500 full-time employees. The company is scheduled to release its fourth-quarter 2023 earnings on February 28th after the market closes.
The decision to downsize comes at a time when Paramount Global has been subject to various M&A discussions. Skydance Media CEO David Ellison has been in talks with Shari Redstone, who owns a controlling stake in Paramount Global through National Amusements Inc., about potentially acquiring NAI. Additionally, Byron Allen’s Allen Media Group recently made an unsolicited $30 billion acquisition offer for Paramount Global. However, the details of Allen’s financial partners remain unclear. In December, Bakish and Warner Bros. Discovery CEO David Zaslav briefly discussed the possibility of merging Warner Bros. Discovery and Paramount Global, but no further progress has been made on that front.
Paramount Global’s revenue for the third quarter of 2023 saw a 3% increase, primarily driven by growth in its streaming and film businesses. However, the company’s largest division, linear TV, experienced an 8% decline in revenue due to the continued contraction of traditional television advertising sales, which dropped by 14% during the quarter.
While the layoffs undoubtedly bring challenging times for those affected, Bakish expressed gratitude for the hard work and dedication of the departing employees. He assured them that their contributions had helped advance the company’s mission of unleashing the power of content worldwide. Bakish also emphasized that despite the difficult decision to downsize, he firmly believed it was the right move for Paramount Global’s future. He encouraged employees to support one another during this transition and expressed confidence in the company’s ability to navigate these changes and emerge stronger than ever.
As Paramount Global continues to adapt to the evolving entertainment landscape, it remains committed to its values, culture imperatives, and fostering an inclusive workplace. The company’s recent successes, combined with its strategic vision for the future, indicate that there is much to be excited about in the coming year.