Paramount Global has initiated the next phase of its plan to lay off 15% of its U.S. workforce, saying the cuts will be 90% complete after further cutbacks today.George Cheeks, Chris McCarthy and Brian Robbins conveyed the news to staffers in a memo this morning. The Co-CEOs months ago said they were aiming to achieve $500 million in annual cost savings, with layoffs a key component in hitting that target.Sources have indicated to Deadline in recent days that the streaming organization within Paramount, encompassing several departments, is expected to be the most directly affected by Phase 2. The company’s advertising division was targeted by a number of cuts last week. Over the course of the year, a number of high-profile execs have left the company and Paramount Television has shut down, with its shows moving to CBS Studios.“Like the entire Media industry, we are working to accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses. In order to set Paramount up for continued success, we are taking these actions,” the memo said. “Days like today are never easy. It is difficult to say goodbye to valued colleagues, and to those departing, we are incredibly grateful for your countless contributions.”The IBEW, which is the largest union representing CBS employees, weighed in against the trimming of CBS Broadcasting employees in New York, Los Angeles and Washington, D.C. “IBEW members have been producing CBS broadcasts since before the invention of television,” said Robert Prunn, the union’s Director of Broadcasting and Telecommunications, “and these layoffs are a hard pill to swallow.”Paramount had 21,900 full- and part-time employees in 33 countries globally at the end of 2023, as well as 4,500 project-based staffers. Last February, the company let go of 3% of employees. The current rounds are expected to see a total of at least 2,000 more employees depart. No exact figure has been available for today’s round but it is believed that several hundred workers are affected.The staff reductions stem from a daunting set of financial challenges facing Paramount and other legacy media companies, especially due to the decline in linear TV viewership and advertising. Last month, as Paramount reported its second-quarter financial results, it also revealed a $6 billion write-down of the value of its cable network assets. As the cash flow from traditional pay-TV sources diminishes, the cost profile of the streaming business and the ever-increasing fees for top-tier sports rights are only adding to the worries of companies saddled with significant debt.As it has tightened the belt over the past year, Paramount has also pursued a sale of certain assets as well as the company as a whole. Skydance Media last month clinched a merger deal that will see it invest $8 billion in the takeover of controlling shareholder National Amusements before merging fully with Paramount.
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