Paramount Global has initiated a workforce reduction, affecting approximately 800 employees, equivalent to around 3% of its total workforce, as reported by CNBC on Tuesday, citing an insider. The media industry is contending with the ascendancy of streaming services over traditional television, compounded by the repercussions of last year’s Hollywood strikes. The sector is also grappling with a soft advertising market and economic uncertainties.
Chief Executive Officer Bob Bakish conveyed the news to employees in an internal memo, quoted by CNBC. Bakish mentioned that these adjustments are aimed at fostering momentum and realizing the company’s strategic vision for the upcoming year. Despite the layoffs, Bakish expressed optimism about the future, stating, “I firmly believe we have much to be excited about.”
Paramount Global, known for film franchises such as “Top Gun” and “Mission: Impossible” and the popular television show “Yellowstone,” did not immediately respond to requests for comments. In January, Bakish had already indicated that the company would be letting go of an unspecified number of employees.
The company plans to concentrate its resources on its most potent franchises, films, and series, reducing its focus on local and international originals, Bakish had previously noted. As of December 31, 2022, Paramount Global employed approximately 24,500 full- and part-time staff across 37 countries, with an additional 5,800 project-based employees.
The layoffs align with broader trends in the industry, with more than 34,000 workers laid off from 141 tech companies globally in the current year, according to Layoffs.fyi. Major media outlets, including the Los Angeles Times and Business Insider, have also implemented job cuts.
This downsizing comes on the heels of Paramount’s CBS broadcast network announcing record-breaking Super Bowl viewership of 123.4 million across TV and streaming platforms, according to preliminary Nielsen ratings.