Paramount Global is laying off 25% of its domestic team as part of its ongoing consolidation efforts following the integration of Showtime into its cable and streaming services.
Paramount mass layoffs mean ‘MTV News’ is no more
As reported by The Hollywood Reporter, the consolidation will result in two functions, studios and networks, with studios combining Showtime with MTV Entertainment Studios, and networks merging nine separate teams into one portfolio group.
The majority of the job losses will come from the latter group, with some units, including MTV News, being shut down altogether. The cuts will affect approximately 25% of the domestic workforce.
In a memo to staff, CEO Chris McCarthy stated that the integration of Showtime and MTV Entertainment Studios had resulted in a record of successful programming, including hits such as Yellowstone, The Challenge, Your Honor, George & Tammy and Yellowjackets.
However, despite these successes, Paramount Global is feeling the pressure of economic headwinds, and the cuts are a necessary strategic realignment of the company.
The decision to reduce the workforce comes as parent company Paramount Global posted disappointing quarterly earnings, citing an 11% drop in TV ad revenue. CEO Bob Bakish stated that the company is “navigating a challenging and uncertain macroeconomic environment,” and that the impact of this is being seen on the company’s financials.
The job losses are part of a broader trend in the entertainment industry, with other major players such as Warner Brothers Discovery and Disney also announcing layoffs and corporate reorganisations.
Paramount Global’s decision to cut jobs is aimed at streamlining operations and reducing costs while maintaining a focus on successful programming in key areas, McCarthy explained in a memo to staff.
“We have some of the most passionate and dedicated team members, who bring their full selves to drive our brands and business forward. This is why it’s so difficult to say goodbye to our friends and colleagues. To those impacted, we deeply appreciate the passion and creativity you have brought every day. I want to thank you for your many contributions,” he wrote.
The announcement of the job cuts will undoubtedly be difficult for those affected, and the company’s leadership team and HR partners are committed to ensuring that the process is done with empathy and respect.
However, the consolidation of functions is aimed at creating a more effective approach to the company’s business and ensuring continued success in the face of economic headwinds.