Paramount Global will begin a program of layoffs on Tuesday (Feb. 13) that will reportedly impact approximately 800 employees in the U.S. and internationally.
In an internal memo obtained by Playback, Paramount Global CEO Bob Bakish (pictured) said the cuts are needed to streamline costs, and that impacted employees based in the U.S. will receive notification by the end of the business day. For those in other territories, “notifications will occur over time in line with our local legal obligations in each of the countries where we operate,” Bakish said.
The company had reported 24,500 employees as of December 2022.
A spokesperson for Paramount Global told Playback Daily that the company could not comment on market-specific figures when asked about the potential impact to its Canadian workforce.
“To those with whom we are parting ways, we are incredibly grateful for your hard work and dedication,” wrote Bakish in the memo. “Your talents have helped us advance our mission of unleashing the power of content around the world. We are a better company because of you.
“While I realize these changes are in no way easy, as I said last month, I am confident this is the right decision for our future,” he added. “These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead — and I firmly believe we have much to be excited about.”
Paramount has been the centre of much M&A speculation over recent months, with various reports naming Skydance Media and RedBird Capital, and, most recently, Warner Bros. Discovery and Byron Allen, as potential suitors.
The company’s Q4 financial results are set to be announced at the end of February. Q3 results, announced in November of last year, saw losses in Paramount’s DTC division lessen by 31%. The TV division, meanwhile, reported revenue of $4.6 billion, with affiliate and subscription revenue effectively flat. Ad revenue in the segment fell 14% year-on-year due to continued softness in the global ad market as well as lower political advertising.
“Looking ahead, we remain on the path to achieving significant total company earnings growth in 2024,” Bakish said at the time, via a statement. The internal memo shared today with staff also reiterated that as a priority.
The full memo is as follows:
Team,
As we shared at Bob Live in January, returning our company to earnings growth is a top priority in 2024. This will require us to continue to grow revenue, while reducing costs. And unfortunately, part of streamlining costs means that today, we will begin the difficult process of saying goodbye to some of our very valued colleagues across Paramount.
We will be notifying impacted employees who are based in the U.S. by the close of business today. We’ll share details directly regarding next steps and will do all we can to support you during this time of transition.
There will also be impacts in some of our offices based outside the U.S. Those notifications will occur over time in line with our local legal obligations in each of the countries where we operate.
To those with whom we are parting ways, we are incredibly grateful for your hard work and dedication. Your talents have helped us advance our mission of unleashing the power of content around the world. We are a better company because of you.
While I realize these changes are in no way easy, as I said last month, I am confident this is the right decision for our future. These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead — and I firmly believe we have much to be excited about.
We are coming off of a blockbuster event with Super Bowl LVIII that showcased the full power of Paramount. We’re launching a big slate of new and returning primetime programming on CBS, and last night marked the return of Jon Stewart to The Daily Show. We continue to release films, like Bob Marley: One Love this week, which reinforce our heritage as one of Hollywood’s most iconic movie studios. And we’re coming together as One Paramount more than ever, with continued commitment to our values, culture imperatives and fostering an inclusive workplace.
We should all take time this week to support one another — our colleagues who will be impacted, as well as our teams remaining — in adjusting to this change. Speaking personally, I want our entire team to know that I am committed to sharing updates when we’re able to.
As always, I am continually grateful for your commitment to our company. And I’m confident we will navigate this transition and emerge stronger than ever.
Best, Bob
With files from Justin Anderson and Kelly Townsend
A version of this story originally appeared in Realscreen
Image courtesy of Paramount Global