Paramount lays off 15% of workforce

Paramount Global is set to lay off a significant number of employees, with hundreds expected to be affected in the coming weeks. A memo from co-CEOs Chris McCarthy, Brian Robbins, and George Cheeks, leaked to entertainment outlets, outlined a phased approach to the layoffs, which will begin immediately and continue through the end of the year. The executives acknowledged the difficulty of parting ways with valued team members, stating that they expect 90% of the layoffs to be completed by the end of September. The announcement coincided with the release of Paramount's second-quarter financial results, revealing a revenue decline of 11% year-over-year, totaling $6.81 billion. The company emphasized that it is at a critical juncture, necessitating changes to strengthen its business model. The memo reassured employees that while the process is challenging, the leadership is confident in the company's future direction. In addition to workforce reductions, Paramount is focusing on transforming its direct-to-consumer streaming services and optimizing its asset mix as part of its strategic plan. The company anticipates a restructuring charge of approximately $300-$400 million in the third quarter due to the layoffs, with the financial impact expected to unfold over the coming quarters, according to CFO Naveen Chopra. As the media landscape continues to evolve, Paramount has not yet responded to requests for further comments on the layoffs. The company aims to keep employees informed throughout the transition process.