Paramount Global Cuts 3.5% of U.S. Workforce Amid Streaming Shift

Paramount Global has announced a 3.5% reduction in its U.S. workforce, affecting over 600 employees. This move comes as the company grapples with a challenging macroeconomic environment and the declining viewership of linear television in the United States. The decision to cut jobs is part of a broader strategy to streamline operations and focus on growing its streaming services.

The latest round of layoffs follows a 15% reduction in the workforce last year, which included the closure of the Paramount Television Studios after 11 years of operation. The company had anticipated saving $500 million through these cost-cutting measures. The recent announcement comes just a day after the departure of Chief Financial Officer Naveen Chopra, who is set to join Roblox in the same role.

In a memo to employees, the company's co-CEOs, George Cheeks, Chris McCarthy, and Brian Robbins, stated that the layoffs would begin immediately and primarily affect U.S.-based staff, with potential impacts on overseas employees in the future. The memo highlighted the need to prioritize investments in the growing streaming business amidst the ongoing decline of linear television and the volatile economic landscape.

The decision to reduce the workforce is part of a broader trend in the media industry, with other major players also implementing cost-cutting measures. Earlier this month, Disney announced global layoffs affecting hundreds of employees, primarily in the Disney Entertainment division. Warner Bros. Discovery also cut fewer than 100 employees from its linear television business.

The layoffs at Paramount Global underscore the challenges faced by traditional media companies as they navigate the shift towards streaming services and a tough economic environment. The company's focus on cost reduction and strategic investments in streaming aims to position it for long-term growth in a rapidly changing industry landscape.