Paramount Global CEO Bob Bakish recently asked his staff to prioritize “managing costs” and earnings growth amid expectations of looming layoffs and deal chatter surrounding the entertainment giant.On Tuesday, the CEO made things official, unveiling plans for job reductions in the U.S., an estimated 800 according to sources, and cuts abroad over time. The company had about 24,500 employees as of its last 10-K disclosure, which reflects staff count in December 2022. Bakish’s memo coincides with what had been an expected, significant move to cut costs early this year as Wall Street evaluates Paramount’s prospects as a stand-alone company.“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 wrote in a memo obtained by The Hollywood Reporter. “We will be notifying impacted employees who are based in the U.S. by the close of business today.”The announcement was made just after its channels (CBS, Nickelodeon, Paramount+) hosted Super Bowl LVIII, which broke a ratings record with 123 million viewers. Added the CEO: “There will also be impacts in some of our offices based outside the U.S.,” with staff to be notified “over time.”Bakish concluded: “These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead — and I firmly believe we have much to be excited about.”The move arrives after a year of cost cuts and corporate reorganizing in 2023 that saw Showtime merge with flagship streaming service Paramount+, MTV News shutter, a stake in BET put up for sale (and then taken off the market) and the studio weathering the production impact of dual work stoppages throughout the summer.Year to date, Paramount stock is down around 7 percent as mogul Shari Redstone, who controls the conglomerate through National Amusements, is speculated to be evaluating offers to sell part or all of the media empire. In its last quarterly earnings disclosure, Paramount topped revenue estimates for how much it could cut losses in its streaming unit (only losing $238 million), but it faces persistent questions about whether it can scale up to compete with much larger rival companies like Netflix or Disney.
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