Paramount to Lay Off 15% of Staff and Merge with Skydance

Paramount Global revealed on Thursday that it will lay off 15% of its U.S. workforce, approximately 2,000 employees, as part of a strategic move to cut $500 million in annual costs in preparation for its merger with Skydance Media. The layoffs will primarily target redundant roles in marketing, communications, finance, legal, technology, and other support functions, according to co-CEO Chris McCarthy. This decision comes alongside a significant $6 billion write-down in the value of its cable television networks. The write-down reflects recent trends in the linear affiliate marketplace and the overall market valuation indicated by the Skydance transaction. Paramount's announcement underscores the ongoing challenges faced by traditional television networks as consumer preferences shift towards streaming services, leading to a decline in cable subscriptions. This trend has prompted similar actions from other media companies, including Warner Bros. Discovery, which recently reported a $9.1 billion write-down on its television business. The turbulence in the media landscape is not limited to traditional television. Digital news outlets and print publications are also feeling the impact, with Axios announcing a 10% staff reduction, marking its first layoffs in history. CEO Jim VandeHei described the situation as a necessary adjustment to focus on core growth areas amid a rapidly evolving media environment. Additionally, the long-established TV trade magazine Broadcasting+Cable has announced its closure, citing the industry's rapid transformation as a driving factor. These developments highlight the significant shifts occurring across the media sector, affecting various platforms and formats.