Paramount Global (PAR.US) initiates layoff plan, closing a 11-year-old TV studio

Paramount Global (PAR.US) began layoffs on Tuesday to respond to last week's announcement that it would cut 15% of its workforce across the United States. The company also closed its 11-year-old Paramount Television Studios (PTVS), which had been working on all current projects with the studio, according to a memo sent to staff members. “Needless to say, this is not a decision based on the performance of PTVS. This is a result of the significant changes in the television and streaming media markets and the need to streamline our company,” said George Cheeks, co-chief executive, in a memo to staff members. The company plans to begin layoffs on Tuesday and expects to complete 90 per cent of them by the end of September. “The industry is evolving and Paramount is at an inflection point where we must make changes to strengthen our business,” said George Cheeks, Chris McCarthy and Brian Robbins in another memo to staff members. “While these actions are often difficult, we are confident in the direction we are headed.” The layoffs are expected to save the company $500m a year in operating costs as it tries to minimise the impact of its shrinking cable business. Paramount booked nearly $6bn in impairment charges in its second-quarter report, like its rival Warner Bros Discovery (WBD.US), which had more than $9bn in television project impairments.