LOS ANGELES (CNS) – Media giant Paramount Global began distributing layoff notices Tuesday as it begins trimming its domestic labor force ahead of its pending takeover by Skydance Media.
Company executives announced last week that about 15% of its U.S.- based labor force will be cut in an effort to streamline the company and reduce redundancies. Affected employees were expected to be notified beginning Tuesday and continuing through later this year.
In a memo sent to staff Tuesday — and obtained by multiple media outlets — Paramount Global co-CEOs George Cheeks, Chris McCarthy and Brian Robbins said the company is slashing costs by $500 million.
“We know that having to part ways with teammates whose contributions have been instrumental to our success is incredibly hard,” according to the memo. “In partnership with our HR leaders, we are committed to providing support to employees transitioning on from Paramount and to our teams who will need to adapt to these changes.”
The Los Angeles Times reported that the company has also announced the closure of its Paramount Television Studios, which produces shows such as “Reacher,” “The Spiderwick Chronicles,” “13 Reasons Why” and “Station Eleven.” Production of those shows will be taken over by Paramount’s larger TV division, CBS Studios.
“This is not a decision based on how PTVS performed,” Cheeks wrote in a memo to staff members, according to The Times. “This move is the result of significant changes in the TV and streaming marketplace and the need to streamline our company.”
Last month, Skydance Media — founded in 2010 by movie producer David Ellison — announced it has reached an agreement to acquire Paramount Global. Skydance will acquire National Amusements Inc., which is controlled by Shari Redstone and owns the controlling share stake in Paramount.
Paramount Global was created in 2019 through the combination of Viacom and CBS. The company includes Paramount Pictures, BET Networks and networks including MTV, Nickelodeon, Comedy Central, CMT, Showtime, Paramount+ and Pluto TV.
The Ellison family and RedBird Capital Partners will invest over $8 billion in New Paramount and to acquire National Amusements, Inc., according to Skydance Media.
Recent Comments