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Layoffs are hitting Paramount.
Top line
Days after Super Bowl 58 smashed viewership records and Paramount saw record-breaking ad sales, the company is moving forward with significant layoffs, according to a memo from CEO Bob Bakish on Tuesday.
Reports say the company could cut up to 800 jobs across its portfolio, which includes CBS, Paramount+, Paramount Pictures, Pluto TV, Showtime and cable networks.
Between the lines
In the memo obtained by ADWEEK, Bakish noted that returning the company to “earnings growth” is a top priority in 2024, and that requires “reducing costs.”
“And unfortunately, part of streamlining costs means that today, we will begin the difficult process of saying goodbye to some of our very valued colleagues across Paramount,” Bakish said.
The memo states that impacted employees will be notified by today’s close of business, and there will also be impacts outside of the U.S. that will occur over time to adhere to local legal obligations.
“To those with whom we are parting ways, we are incredibly grateful for your hard work and dedication,” Bakish said. “Your talents have helped us advance our mission of unleashing the power of content around the world. We are a better company because of you.”
Besides announcing cuts, Bakish hyped up the company’s accomplishments, including “a blockbuster event with Super Bowl LVIII” and Jon Stewart returning to The Daily Show.
“As always, I am continually grateful for your commitment to our company. And I’m confident we will navigate this transition and emerge stronger than ever,” Bakish said.
Bottom line
Regardless of the timing of the cuts, the writing has been on the wall for Paramount. Bakish previously sent a memo in January that started speculation on layoffs, noting that the global workforce would be reduced and “every team, division and brand” will be aligned.
That memo came amid constant rumors of a buyer circling Paramount, with David Ellison’s Skydance Media and media mogul Byron Allen in the mix.
See the full memo below:
