Paramount Global to Reduce Workforce by 800 Employees

Paramount Global has initiated a workforce reduction of approximately 800 employees, just one day after celebrating record-breaking Super Bowl ratings on CBS.

CEO Bob Bakish conveyed this decision to staff members through an internal memo on Tuesday. The layoffs, constituting roughly 3% of Paramount's workforce, are part of the company's efforts to enhance efficiency and align with its strategic objectives for the upcoming year.

Paramount Global concluded 2022 with around 24,500 full-time and part-time employees.

Affected employees will receive notifications on Tuesday, as stated in Bakish's communication.

Despite the workforce adjustments, Bakish remains optimistic about Paramount's future, emphasizing the need to capitalize on existing momentum.

Following this announcement, Paramount's shares experienced a 4% decline in morning trading on Tuesday.

This reduction in personnel comes on the heels of a January report by Deadline, which initially disclosed the likelihood of substantial cuts.

Paramount Global, with holdings such as CBS, Paramount Pictures, Pluto TV, Paramount+, and cable networks like Nickelodeon, BET, and Comedy Central, is exploring merger and acquisition opportunities.

The company had forewarned its workforce about impending cuts in a memo dated January 25, emphasizing the necessity to streamline operations and reduce expenses.

The financial challenges faced by Paramount+ persist, with the streaming service reporting losses of $238 million in the third quarter.

The company is scheduled to release its fourth-quarter earnings on February 28. Despite the Super Bowl 58 on CBS achieving historic viewership of approximately 123.4 million people across all platforms, Paramount Global's decision to cut jobs appears to be part of a broader strategy to navigate the evolving media landscape.

CBS charged a record-high average of $6.5 million for every 30-second Super Bowl advertisement, contributing to additional revenue due to the game's overtime between the Kansas City Chiefs and the San Francisco 49ers.