Paramount Global cuts 15 percent of US workforce amid plans to integrate Skydance Media
Date
8/11/2024 5:31:05 AM
(MENAFN) Paramount Global Media Group announced on Thursday during its quarterly earnings presentation that it plans to lay off 15% of its U.S. workforce, amounting to approximately 2,000 employees, as part of preparations for an anticipated merger with Skydance Media. This move comes as the company looks to streamline operations and achieve significant cost savings. Chris McCarthy, one of the group's chief executives, explained that the decision is part of a broader strategy to realize USD500 million in year-over-year savings, contributing to the USD2 billion in savings identified by Skydance. The layoffs will affect duplicate positions resulting from the merger, particularly in marketing, communications, finance, legal, and other support functions. The reduction in workforce is expected to begin in the coming weeks and be largely completed by the end of the year.
The merger between Paramount Global and Skydance Media, announced in early July, marks a significant shift for the group, which has been actively seeking a partner for months. The merger will result in Skydance acquiring Paramount Global, with Skydance shareholders gaining effective control of the newly formed entity. This strategic move is seen as a necessary step for Paramount Global, which includes iconic brands like Paramount Pictures and CBS, as it seeks to bolster its position in the competitive media landscape. However, the newly merged entity faces the challenge of turning around the Paramount+ streaming service, which, despite having over 71 million subscribers as of March, has incurred losses of approximately USD3.5 billion over the past two years. The success of the merger and the future of Paramount+ will be critical in determining the long-term viability of the combined company.
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