E-Paper
Paramount Global lays off hundreds in US due to ‘decline of cable TV industry’
Paramount Global plans to cut several hundred employees on Tuesday due to a continuing decline in the cable-TV industry.
After Disney, Paramount has also announced its intent to cut down its workforce in the US and lay off hundreds of its staff. The reason - a continuing decline in the cable-TV industry and the broader economic landscape. Bloomberg reported the move will affect about 3.5% of the media company’s US workforce, according to an internal memo sent to staff, reviewed by Bloomberg. (Also read: Disney sacks hundreds of employees across film, television, other units; 4th and largest layoff in 10 months)
Paramount to cut down 3.5% of its US workforce
“These changes are necessary to address the environment we are operating in and best position Paramount for success,” wrote co-Chief Executive Officers George Cheeks, Chris McCarthy and Brian Robbins in the memo, as per Bloomberg.
Paramount, the parent company of TV channels including CBS and MTV and iconic Hollywood film studios, previously cut 15% of its staff in a multi-round layoff last year. In this latest reduction, the majority of employees will be notified immediately, the CEOs said.
The company is currently trying to finalise a merger with Skydance Media and is also dealing with a lawsuit from President Donald Trump alleging that CBS News engaged in election interference.
Disney recently laid off hundreds of employees too
The TV industry in the US has been facing a downturn for years now, with other major studios also cutting down their workforce. Paramount's move comes days after Disney laid off hundreds of its employees as part of cost-cutting. According to Deadline, it was the fourth and largest round of layoffs in the last 10 months that have affected many Disney television operations.
As per Deadline sources, the "size of the cuts on the film and TV side of Disney Entertainment is comparable". However, no teams have been eliminated. The majority of the employees, as per the report, are based in Los Angeles, USA.
