Tuesday 13 August 2024

Paramount Global for sale latest - Deadline: Paramount Television Studios Shutting Down Amid Cutbacks

Story from Deadline:

There have been two major rounds of layoffs at Paramount Global this year, with Paramount Television Studios as a primary target in both. After its team was gutted in the February 13 cuts, as part of today’s reductions, the division is being shuttered altogether. It will cease operations after 11 years at the end of this week. Paramount TV Studios President Nicole Clemens and CBS President and CEO George Cheeks, who oversees the division, announced the decision in separate memos.

FTVS’ shutdown will result in the exit of 20-30 employees. All current PTVS series and development projects will be folded into CBS Studios.

“To be clear, this is not a decision based on how PTVS performed. This move is the result of significant changes in the TV and streaming marketplace and the need to streamline our company,” Cheeks said. “Under Nicole’s leadership, this studio consistently punched above its weight in attracting top storytellers and stars to create best-in-class series. I want to thank every PTVS employee for shepherding a slate of shows that helped usher Paramount into the streaming era.”

Headed into the current wave of layoffs that will impact 15% of Paramount Global’s U.S. workforce over the next few months for $500M in savings, there had been chatter about Paramount TV Studios as a potential casualty following a string of downsizing/consolidation moves since CBS Studios and Paramount TV Studios were put together under Cheeks’ purview in the fall of 2022.

Both Cheeks and Clemens tried to assuage fears at the time by assuring PTVS staff that the division would remain independent from the larger CBS Studios as the two combined support operations by centralizing finance, law, production and casting. The same year, Paramount TV Studios absorbed Paramount+’s scripted originals team. (Word is more P+ layoffs may be coming after Labor Day.)

In the most recent round of layoffs in February, PTVS consolidated development and current under Head of Development Jana Helman, with a slew of senior programming executives leaving. It also dissolved/downsized communications, marketing and post-production which are now handled by CBS Studios. Prior to that, Clemens revealed that the studio was no longer going to produce limited series except for third-party buyers.

Also possibly factoring into the decision to shut down PTVS is Paramount Global’s pending merger with Skydance whose television division is very similar in scope and output to PTVS. The two companies have collaborated on such series as Reacher, Tom Clancy’s Jack Ryan and the upcoming Cross.

Other notable series produced by PTVS over the years include 13 Reasons Why, The Alienist, Station Eleven, Time Bandits, and The Spiderwick Chronicles.

Speculation about CBS Studios and Paramount TV Studios combining has actually been around since the 2019 CBS-Viacom merger was announced. Launched by Paramount Pictures’ Brad Grey in 2013, Paramount TV Studios has been the smaller of the two and its volume was impacted when Paramount+ pared down its scripted originals ramp-up plans to stem streaming losses. The studio continued to sell to outside platforms. 10-In her note to staff, Clemens, who joined PTVS in 2018, reflected on the label’s legacy.

“Over the past 11 years, PTVS has weathered seemingly insurmountable obstacles through a combination of strength, determination, and unwavering commitment,” she said. “We met these challenges with incredible resilience, creativity, and passion for what we do, and I could not be prouder of our team. We’ve also had the privilege to collaborate with some of the most brilliant creative talent in the industry to help tell incredible stories seen around the world, entertaining and shaping culture.”

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