Paramount to Cut 15% of Jobs Due to Budget Cuts

Paramount Global is set to implement significant workforce reductions, beginning Tuesday, as part of a strategic effort to cut costs. Co-CEOs Chris McCarthy, Brian Robbins, and George Cheeks announced in a memo that the layoffs will occur in three phases, ultimately affecting nearly 2,000 employees, which represents 15% of the company’s total workforce. The executives expressed confidence in the company's future despite the challenging nature of these decisions. This announcement follows a previous round of layoffs earlier this year, where approximately 800 employees, or 3% of the workforce, were let go. The cuts come in the wake of controlling shareholder Shari Redstone's departure from the company, which her family has led for over three decades, following an $8 billion deal with tech entrepreneur David Ellison. Paramount has been grappling with declining profits, particularly in its cable television segment, which includes well-known networks like CBS and MTV. The broader economic context reveals growing concerns among the public regarding the state of the U.S. economy. A recent poll indicated that a majority of Americans believe the country is in a recession, with nearly half perceiving unemployment rates to be at a 50-year high, despite conflicting federal data. The competitive landscape is further complicated by the rise of streaming services from major tech companies, which have also been experiencing significant layoffs, with over 130,000 tech workers losing their jobs in 2024 alone.