Paramount Global cuts 3.5% of workforce amid economic woes
- Paramount Global announced a 3.5% workforce reduction due to economic challenges.
- Most affected employees were notified on the same day the announcement was made.
- The company aims to adapt to shifts towards streaming services and continue its restructuring efforts.
In the United States, Paramount Global announced on June 10, 2025, that it would be reducing its workforce by 3.5%. This decision is attributed to the ongoing challenges facing the wider U.S. economy as well as difficulties within the linear television business. The layoffs are part of the aftermath of prior job cuts, which included a significant reduction of around 15% of its workforce a year earlier, when the company aimed to save $500 million and return to profitability. Reports indicate that most affected staff members were notified on the same day the announcement was made. Additionally, the company indicated that some layoffs could extend beyond U.S. borders in the future. The memo sent to employees by Paramount's co-CEOs—George Cheeks, Chris McCarthy, and Brian Robbins—expressed gratitude for the hard work of employees while acknowledging the necessity of these difficult changes. Paramount has struggled to adapt to consumer preferences shifting towards streaming services, causing viewership declines for traditional television. Paramount+ has become a focal point for the company’s investments, aiming to capitalize on the streaming trend. Paramount is also navigating the regulatory hurdles regarding its merger with Skydance Media, and the outcome of this merger will likely influence its financial trajectory moving forward. In reporting the company’s latest financial performance, Paramount indicated a net earnings increase to $152 million on revenues of $7.1 billion during the first quarter of the year. This marks an improvement from the prior year's significant loss of $563 million on higher revenue of $7.6 billion. The strategic focus toward its streaming services and steps to streamline operations highlight the measures being put in place to counteract ongoing industry challenges and to restore financial stability. Paramount is contending with not only market shifts but also legal pressures, such as a lawsuit by former President Donald Trump against CBS, involving allegations related to media representation and accuracy. The restructuring efforts and recent layoffs signal not just a response to immediate financial pressures but aim to create a more adaptable organization that can thrive amid evolving media consumption habits. As Paramount continues to position itself for future successes, the challenges of the current economic landscape signify a critical juncture in the company's history, demanding decisive actions to ensure sustainable growth.