Paramount Global Announces Major Restructuring, Including 15% Layoffs and Studio Closure

Paramount Global, the media giant behind networks like CBS, MTV, and Comedy Central, announced a major restructuring plan that includes layoffs affecting 15% of its US workforce and the closure of its Paramount Television Studios, Reuters reports.

The company aims to reduce annual costs by $500 million and return to profitability ahead of its merger with David Ellison’s Skydance Media.

In an internal memo, Paramount’s co-CEOs stated that the company is at an “inflection point” and that changes are necessary to strengthen the business.

The layoffs, initially announced during a post-earnings call last week, are expected to impact approximately 2,000 employees. The cuts will be rolled out through the end of 2024, with 90% expected to be completed by the end of September.

Paramount Television Studios (PTVS) will cease operations as part of the company’s restructuring. President Nicole Clemens informed employees via email of the studio’s closure, effective by the end of the week.

George Cheeks, Paramount Global’s co-CEO, attributed the decision to the significant shifts in the television and streaming industry, citing a need to streamline operations.

All current PTVS series and development projects will be transferred to CBS Studios, but Cheeks confirmed that members of CBS teams will also be leaving the company as part of the restructuring.

This restructuring comes as Paramount navigates a challenging linear TV market, having recently written down the value of its cable networks by nearly $6 billion.

Despite these challenges, the company’s streaming division, which includes Pluto TV and Paramount+, reported its first quarterly profit in three years on Thursday.