Paramount Global, the owner of broadcast and cable TV networks, has announced a series of layoffs in an effort to reduce costs and increase revenue. The news comes shortly after the company’s CBS network experienced record-breaking advertising sales and achieved the highest-rated telecast for the Super Bowl. The layoffs, which were announced by Paramount Global’s CEO, Bob Bakish, will impact hundreds of employees globally.
Although the exact number of layoffs was not specified in the announcement, sources familiar with the matter have revealed that around 800 employees, approximately 3% of the company’s workforce, will be affected. Bakish had previously warned of impending workforce reductions in a memo on January 25, stating that it was part of their strategy for earnings growth. The cuts will affect employees worldwide, with those in the US being notified by the end of business on Tuesday.
In his memo to employees, Bakish expressed his belief that these adjustments would enable the company to build on its momentum and execute its strategic vision for the year ahead. He emphasized that there is much to be excited about despite the layoffs.
The decision to lay off employees comes amidst reports of discussions regarding the potential sale of Shari Redstone’s stake in Paramount’s parent company, National Amusements. David Zaslav, the CEO of CNN’s parent company Warner Bros. Discovery, has met with Bakish to explore a potential merger between the two companies. Additionally, takeover offers have been made by David Ellison’s Skydance and RedBird Capital.
Paramount declined to comment on these reports.
The layoffs at Paramount Global occur as the media giant aims to transition its business from traditional linear television to streaming. Just recently, CBS’s broadcast of Super Bowl LVIII broke ratings records with a staggering 123.4 million viewers, marking the largest US TV audience since the 1969 moon landing. The network also achieved record-breaking advertising sales for the event.
Bob Bakish expressed his optimism about the company’s performance, stating in a Bloomberg TV interview that they had set the high-water mark for ad sales for a Super Bowl and were on track to achieve an all-time viewing number on Sunday.
Paramount Global’s layoffs follow a trend in the media industry, with several conglomerates making similar workforce reductions in 2024. In January, The Los Angeles Times, TIME, and Business Insider all experienced cuts, while employees at Condé Nast, Forbes, and The New York Daily News staged historic walkouts to protest planned layoffs.
As Paramount Global navigates the changing landscape of the media industry and focuses on streaming services, these layoffs represent a strategic move to streamline operations and position the company for future growth. While the decision is undoubtedly difficult for those affected, it reflects the evolving nature of the industry and the need for companies to adapt to new market demands.