Paramount Global (NASDAQ:PARA) looks to significantly reduce the workforce, with layoffs affecting hundreds of employees across all divisions in February.
However, initial speculation suggested 800 job cuts, the actual number will likely be lower but still substantial, Deadline reports.
Senior executives have reportedly been tasked with meeting specific reduction targets.
These layoffs, rumored to start around February 13, may require impacted employees to leave within a few days of notification, mirroring the quick departures seen during previous pandemic-related cuts.
In the last 14 months, Paramount, like other media companies, has experienced several rounds of layoffs.
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These included cuts at CBS Studios and Paramount TV Studios in November 2022, Showtime in February, and a significant 25% staff reduction in domestic cable networks in May, along with the closure of MTV News after 36 years.
While dealing with these internal changes, National Amusements, Inc, which holds the majority of voting shares in Paramount Global, is reportedly considering acquisition offers.
Apollo Global Management, Skydance Media, and RedBird Capital have shown interest.
Paramount, formed from the merger of Viacom and CBS in 2019, has been grappling with challenges such as pay-TV cord-cutting, a weak advertising market, a loss-making streaming operation, and volatility in the movie industry despite recent successes.
Consequently, the company’s stock value has significantly decreased to less than half its post-merger value.
Previous reports indicated streaming giants like Walt Disney Co (NYSE:DIS) Disney+, Paramount+, Hulu, and Netflix Inc (NASDAQ:NFLX) face difficulty retaining subscribers amidst price hikes and cost-of-living pressures.
Price Action: PARA shares are up 2.65% at $13.76 on the last check Monday.
Also Read: 82,000 Affected In Paramount’s Data Breach – What’s Really at Stake?
Disclaimer:Â This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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