Paramount to Lay Off 15% of US Employees

Paramount Global has reported a significant write-down of nearly $6 billion on its cable networks, alongside a decision to cut 15% of its workforce, equating to approximately 3,200 jobs. This announcement follows a $9 billion write-down by Warner Bros Discovery, highlighting ongoing challenges in the traditional television sector. Despite these setbacks, Paramount's streaming division achieved its first quarterly profit, with an operating income of $26 million, a notable improvement from a loss of $424 million a year prior. The company's second-quarter financial results revealed a total revenue of $6.8 billion, down 11% from the same period last year, and an operating loss of $5.3 billion. The television unit, which includes CBS, reported a 17% decline in revenue, primarily due to reduced advertising income and licensing fees. Analysts have pointed to these write-downs as indicative of the struggles facing traditional TV, with some suggesting that Paramount's best path forward may involve partnerships, such as with Skydance. Co-CEO Chris McCarthy outlined that the layoffs will focus on redundant roles in marketing and communications, as well as streamlining corporate functions in finance and legal. The restructuring is part of a broader strategic plan aimed at achieving $500 million in annual cost savings, with a projected restructuring charge of $300-$400 million in the third quarter. The leadership remains optimistic about the company's future, emphasizing a commitment to transforming Paramount for long-term value.