Paramount Global Slashes 2,000 Jobs in Massive Restructuring Move
Paramount Global is moving forward with plans to slash approximately 15% of its U.S. based workforce, a decision disclosed by co-CEO Chris McCarthy alongside the company’s second-quarter financial results. The impending layoffs are expected to affect around 2,000 employees, focusing primarily on eliminating redundant roles in marketing, communications, and streamlining corporate functions such as finance, legal, and technology.
McCarthy emphasized that these workforce reductions are part of a broader strategic initiative to adapt to the evolving media landscape. “We have incredibly talented people at Paramount, and these actions are not a reflection of their contributions” McCarthy stated. “Rather, they are necessary to transform our organization for the future”.
The announcement comes amid challenging times for Paramount Global, which is grappling with significant financial pressures. The company reported a total revenue of $6.81 billion for the second quarter, a decline of 11% compared to the previous year. More strikingly, Paramount suffered a near $5.32 billion operating loss, primarily due to a $5.98 billion goodwill impairment charge related to its cable networks unit.
As part of its strategic overhaul, Paramount Global aims to achieve $500 million in annual cost savings, a figure that forms part of a larger $2 billion cost efficiency target. This restructuring effort will include a $300-$400 million charge in the third quarter linked to the layoffs, with the financial impact expected to extend over the next several quarters.
In his remarks, McCarthy pointed out that the job cuts will unfold “in the coming weeks” and are anticipated to be largely completed “by the end of the year”. The restructuring, he added, is critical to the company’s future success, especially as it seeks to transform its direct-to-consumer streaming business and optimize its asset portfolio.
Despite the somber news, Paramount’s leadership remains optimistic about the company’s long-term prospects. The three co-CEOs reaffirmed their commitment to executing the strategic plan with urgency. “We are confident that our Plan will drive long-term value by leveraging our broad hit content as we continue to transform Paramount for the future ” they asserted.
Paramount Global’s workforce reduction reflects broader industry trends as media companies across the U.S. adapt to shifting consumer habits and technological advancements. The cuts are seen as a necessary step for Paramount to stay competitive in an increasingly challenging market.
SOURCE: Fox Business
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Paramount Global is moving forward with plans to slash approximately 15% of its U.S. based workforce, a decision disclosed by co-CEO Chris McCarthy alongside the company’s second-quarter financial results. The impending layoffs are expected to affect around 2,000 employees, focusing primarily on eliminating redundant roles in marketing, communications, and streamlining corporate functions such as finance, legal, and technology.
McCarthy emphasized that these workforce reductions are part of a broader strategic initiative to adapt to the evolving media landscape. “We have incredibly talented people at Paramount, and these actions are not a reflection of their contributions” McCarthy stated. “Rather, they are necessary to transform our organization for the future”.
The announcement comes amid challenging times for Paramount Global, which is grappling with significant financial pressures. The company reported a total revenue of $6.81 billion for the second quarter, a decline of 11% compared to the previous year. More strikingly, Paramount suffered a near $5.32 billion operating loss, primarily due to a $5.98 billion goodwill impairment charge related to its cable networks unit.
As part of its strategic overhaul, Paramount Global aims to achieve $500 million in annual cost savings, a figure that forms part of a larger $2 billion cost efficiency target. This restructuring effort will include a $300-$400 million charge in the third quarter linked to the layoffs, with the financial impact expected to extend over the next several quarters.
In his remarks, McCarthy pointed out that the job cuts will unfold “in the coming weeks” and are anticipated to be largely completed “by the end of the year”. The restructuring, he added, is critical to the company’s future success, especially as it seeks to transform its direct-to-consumer streaming business and optimize its asset portfolio.
Despite the somber news, Paramount’s leadership remains optimistic about the company’s long-term prospects. The three co-CEOs reaffirmed their commitment to executing the strategic plan with urgency. “We are confident that our Plan will drive long-term value by leveraging our broad hit content as we continue to transform Paramount for the future ” they asserted.
Paramount Global’s workforce reduction reflects broader industry trends as media companies across the U.S. adapt to shifting consumer habits and technological advancements. The cuts are seen as a necessary step for Paramount to stay competitive in an increasingly challenging market.
SOURCE: Fox Business
