Paramount is in big trouble – and they’re cutting jobs and closing studios to try and keep their head above water.
Crisis At Paramount
Paramount Television Studios (PTVS) is closing its doors, marking the end of an era just 11 years after its launch.
The End of an Era
The drastic move is part of Paramount Global’s sweeping cost-cutting strategy announced recently – just as the company gears up for a major merger with Skydance Media.
15% of Workforce Facing Layoffs
The company is in the middle of a larger, brutal restructuring effort, including a massive downsizing spree. The axe is set to fall on 15% of the U.S.-based workforce – about 2,000 employees.
Quarterly Earnings Shock
This was announced during the last quarterly earnings call, where co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins outlined their plan to slash $500 million from the company’s expenses this year.
Repeat Offender
This isn’t the first round of cuts – they already laid off 800 employees earlier this year.
Deadline for 90% Cuts
They expect about 90% of the cuts to be completed by the end of September, and the remaining layoffs will trickle out through the end of the year.
Cable TV Collapse
Paramount’s cable TV networks are tanking. They recently wrote off $6 billion from their value and now they are trying to trim the fat.
Preparing for Skydance Media
But it’s not just about cutting jobs – the closure of PTVS and the layoffs come as Paramount is gearing up for a huge merger with Skydance Media. The company is frantically trying to get its finances in order before the deal goes through.
Leadership Exodus
The fact that PTVS president Nicole Clemens is leaving – along with about 30 staff members – is only adding to the chaos, although it’s not a big surprise to those in the know.
CBS Studios to the Rescue
The studio’s series and projects will move over to CBS Studios, a Paramount sibling.
Executives Address the Impact of Layoffs
In an internal memo to employees, the trio of execs spoke about how tough these layoffs are – especially for those who have been instrumental to the company’s success. “Paramount is at an inflection point where changes must be made to strengthen our business,” they stated.
Support and Solidarity
They reassured everyone that support would be provided to those transitioning out and asked staff to be mindful of how the news might impact their colleagues, writing, “We are committed to providing support to employees transitioning on from Paramount and to our teams who will need to adapt to these changes.”
Reducing Redundancies
The layoffs will impact every division within Paramount, with a focus on “redundant functions and streamlining corporate teams.”
Leadership Shuffle
Adding to the drama, Paramount’s leadership is currently a huge mess. Instead of a single CEO, they’ve got an “Office of the CEO” after Bob Bakish stepped down earlier this year.
New Leadership Faces Critical Challenges
The new leadership is under serious pressure to make this plan work, and critics are questioning if this approach is the right one.
Buyout Drama
Here’s where it gets even more intriguing: Paramount is still in its “go-shop” phase, meaning other potential buyers can swoop in with offers.
Sony and Apollo Drop Out of the Race
Sony Pictures and private equity firm Apollo were in the mix but have dropped out, leaving Paramount to deal with its internal issues as it prepares for the future.
Waiting Game
While Shari Redstone and National Amusements have agreed to sell Paramount to a group led by Skydance and RedBird Capital, the deal won’t be finalized until early 2025. That’s a long wait, and it’s putting extra pressure on the current execs to get things under control. There’s a lot riding on how well the company handles these changes.
Industry Turmoil
As if that wasn’t enough, the industry itself is in turmoil. The rapid changes in media consumption and the decline of traditional cable TV mean Paramount is struggling to keep up.
The Road Ahead
So, what’s next for Paramount? With all these changes, it’s hard to say. The company is trying its best to get its finances in order, and its focus is clearly on slashing costs and staying competitive. It’s a high-stakes gamble that could pay off big time, but we won’t know until 2025.
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