Paramount is embarking on another significant round of layoffs as part of its ongoing effort to streamline operations and cut costs. Co-CEOs George Cheeks, Brian Robbins, and Chris McCarthy informed staff that “phase two” of the workforce reductions would commence today, with expectations that by the end of the day, 90% of the planned cuts will be completed.
This latest round follows an earlier announcement where the executives revealed a plan to reduce 15% of the company’s U.S. workforce in pursuit of $500 million in savings. The first phase of layoffs occurred shortly after that announcement and included major changes, such as the closure of Paramount TV Studios and the exit of several high-profile executives.
While specific details about the impact of today’s layoffs remain unclear, the co-CEOs noted that the company is working to enhance streaming profitability while adjusting to changes in the traditional media landscape. CBS News is one division reportedly affected, with the IBEW union expressing concern, stating that the layoffs are a “hard pill to swallow” for members who have been part of CBS broadcasts since the early days of television.
The timeline for implementing the final 10% of cuts is still uncertain, although executives had previously indicated that these would be completed by the end of 2024.
In their memo to staff, the co-CEOs addressed the challenges of such transitions, acknowledging the difficulty of saying goodbye to valued colleagues. They expressed gratitude for the contributions of those leaving and emphasized the importance of resilience and commitment in navigating the company’s future.
“We appreciate everyone’s resilience and commitment to delivering some of the biggest hits across TV and Film,” they wrote. “These actions are necessary to best position the company for success moving forward.”
