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Saturday, 28 September 2024

Paramount Global for sale latest - Deadline: CBS Broadcasting Layoffs, Part Of Broader Paramount Cuts, Slammed By IBEW As “A Hard Pill To Swallow”

Story from Deadline:

The largest union representing CBS employees is slamming the latest round of Paramount layoffs.

Among the divisions of the media company affected by the cutbacks is CBS Broadcasting, which has let go of staffers in New York, Washington and Los Angeles, according to the IBEW.

Paramount Global made an internal announcement about Phase 2 of its ongoing layoffs Tuesday morning, saying 90% of the planned cutbacks will be completed after the new phase. In all, about 15% of the company’s U.S. jobs are being eliminated.

In addition to objecting to Tuesday’s move, the union vowed to closely monitor the review of Paramount’s pending merger with Skydance Media by the FCC and other regulatory agencies.

“We’re disappointed that CBS was unable to find a way to retain these highly skilled professionals in their operation,” said IBEW Director of Broadcasting and Telecommunications Robert Prunn. “IBEW members have been producing CBS broadcasts since before the invention of television, and these layoffs are a hard pill to swallow.”

In all, about 2,000 employees will be departing the company in the layoffs, which are hitting 15% of the U.S. workforce. Paramount Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins have said the cuts will help the company achieve $500 million in annual cost savings. The Skydance merger, which was formalized last month, is expected to close in the first half of 2025.

Paramount’s internal memo about the latest cutbacks acknowledged the financial pressures squeezing it and other legacy media companies. ““Days like today are never easy,” it added. “It is difficult to say goodbye to valued colleagues, and to those departing, we are incredibly grateful for your countless contributions.”

Reps from CBS and Paramount had no additional comment on the broadcast cuts when contacted by Deadline.

“In the days ahead, we’ll be working with our members and CBS to ensure that the terms of the IBEW-CBS contract are followed closely and that our members receive all of the notice and benefits due to them during this period of transition,” Prunn said.

The IBEW said members affected by the cuts include editors as well as workers in media ingest, distribution and show production.

“We understand that there are additional pressures on CBS due to the pending Skydance Media takeover. As the largest union representing CBS employees, we will continue to monitor the network’s actions and follow the sale’s approval process by the FCC and other government entities involved,” said IBEW International President Kenneth W. Cooper.

Regulatory experts and Washington, D.C. sources have indicated that the Paramount-Skydance merger is not expected to hit any major turbulence given that a much smaller entity is going to be folded into the existing company. Still, the FCC last year did effectively block the sale of local TV giant Tegna to private equity firm Standard General, raising concerns that the $8.6 billion could “result in job losses.”

© 2024 Deadline.