The job cut fever is riding high, and many big companies are cutting their workforce to ensure a better and more efficient operational capability. Paramount is the next company to follow the suit. The media giant has announced that it will be closing down its television studio and, as a result, will lay off 15% of its workforce starting from Tuesday. The layoff is a part of Paramount’s planned restructuring. Media giant Paramount owns networks like CBS, Comedy Central, and MTV, and it is planning to reduce its annual costs by as much as $500 million and return to a profitable path after its merger with David Ellison’s Skydance Media.
In an internal memo, it was mentioned that the company is at its “Inflection Point” and needs to make some drastic changes to strengthen itself. The layoffs announced are expected to affect over 2000 employees, which will be completed by the end of September 2024. They wrote in the mem0, “The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in our direction forward. We understand that you may have questions about the next steps, and while we may not be able to provide all the answers at this time, we will continue to update you on our progress.”
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The Co-CEO of Paramount, George Cheeks, said that this move to close the studio by the end of the week is a result of major changes witnessed by the television industry in the last few years. The media giant needed to streamline its operations. He also mentioned that all the current Paramount Television Studios series will be transferred to CBS Studio. He further added that some members of the CBS team would be laid off.
This new trend of laying down employees has significantly reduced the sense of job security among executives and agents alike.
